Head Start has not been "fully funded," which means
A. there wasn't enough money to pay the teachers a salary commensurate with their skill.
B. it has been run mainly by volunteers.
C. there were children who were eligible to be in the classes but no slots were available.
D. all of the above.
Answer: C
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The income elasticity of demand for food
A) does not change when an individual's income changes. B) increases as an individual's income increases. C) decreases as an individual's income increases. D) is negative.
Which of the following statements is FALSE about the issues faced by the government when contemplating a tax?
A) Consideration must be given to how tax rates relate to the amount actually received. B) Consideration must be given to how taxes influence market prices. C) Consideration must be given to how taxes influence equilibrium quantity. D) Consideration must be given to the amount of funds the government will be receiving from the transfer payments paid by the public to the government.
Under a balanced budget policy, a sharp rise in GDP will cause
a. no serious budget changes. b. a tax cut or an increase in expenditures. c. a tax increase or expenditure cut. d. tax receipts to exceed government expenditures.
Economists Chamberlain and Prante of the Tax Foundation note that if the U.S. population in 2004 were grouped into quintiles by income:
A. Only the top income quintile paid more in taxes than the benefits they received from government spending B. The top two income quintiles paid more in taxes than the benefits they received from government spending C. The top three income quintiles paid more in taxes than the benefits they received from government spending D. Only the bottom income quintile paid less in taxes than the benefits they received from government spending