Economics MCQs

Correct answer B. Both the wages and the marginal productivity of men will be higher than they otherwise would be

Correct answer A. The return to any factor of production that is in fixed supply

Correct answer B. A commonly used measure of the degree of inequality in an income distribution

Correct answer A. One family has all the income and everyone else has nothing

Correct answer D. Those with equal ability to pay should bear equal tax burdens

Correct answer A. Average tax rate

Correct answer A. A proportional tax

Correct answer B. Regressive tax

Correct answer C. When households can alter their behaviour and do something to avoid paying a tax

Correct answer A. VAT

Correct answer C. A means-tested cash benefit

Correct answer B. If poor people earn more, their benefits fall, leaving them no better off

Correct answer C. A person's normal or average income

Correct answer B. They exaggerate the inequality of living standards

Correct answer A. Libertarianism

Correct answer B. Liberalism, utilitarianism, libertarianism

Correct answer D. The idea that people should consider policy as if behind a veil of ignorance about their circumstances in society, and the idea that people will then be particularly concerned about the possibility that they might find themselves at the bottom of the income distribution

Correct answer C. Unskilled workers, if the demand for labour is relatively elastic

Correct answer D. It generates a smaller disincentive to work than most alternative anti-poverty policies

Correct answer D. Both spending and labour-supply decisions