罗森 财政学 第七版(英文版)Chap013.docVIP

CHAPTER 13 - Taxation and Efficiency MultipleChoice Questions 1. An income effect a) is measured as the change in prices over time. b) is not possible when people are unemployed. c) requires interest rates to remain constant. d) is the change in the quantity demand, due to the fact that real income changes when prices change. e) is none of the above. 2. Equivalent variation means a) finding an equivalent change in income that puts a person on the same utility as a change in price would. b) finding equal tax rates that insure quantity demanded does not change. c) equalizing excess burden across all markets. d) moving the same distance in either direction from a starting point on an indifference curve. e) price variations that ensure quantity demanded does not change. 3. The compensated demand curve a) shows how the quantity demanded changes when the price changes. b) shows how income is compensated, so that the individual’s commodity bundle stays on the same indifference curve. c) is sometimes referred to as the Hicksian demand curve. d) is all of the above. e) is none of the above. 4. The slope of the production possibilities curve is the a) marginal rate of substitution. b) contract curve. c) offer curve. d) Engel curve. e) marginal rate of transformation. 5. Lump sum taxes a) create no excess burden. b) are not as widely used as other forms of taxation. c) generally lack a sense of equity. d) are all of the above. e) are none of the above. 6. The marginal rate of substitution is a) the slope of the utility curve. b) the slope of the contract curve. c) the slope of the utility possibilities curve. d) none of the above. 7. Points on the same utility curve are a) points where the person is indifferent between bundles on the line. b) points where utility is maximized. c) never possible. d) known as “points of light.” e) all of the above. 8. In the double-dividend hypothesis, if the proceeds from a Pigouvian tax are used to ________ income tax rates, then efficiency