Econ 320 Final Exam Latest Update 2024-2025
Actual Exam from Credible Source with 70
Questions and 100% Verified Detailed Correct
Answers Guaranteed A+ Approved by Professor
A market equilibrium in which all types of individuals buy full insurance even though it is
not fairly priced to all individuals is called a _________ equilibrium and occurs when all
consumers are ___________. - CORRECT ANSWER: pooling; risk averse
A tax levied on producers is fully shifted to producers when - CORRECT ANSWER:
supply is perfectly inelastic
All other things equal, the deadweight loss of a tax on producers is higher when supply
is ________. All other things equal, the deadweight loss of a tax on producers is higher
when demand is __________. - CORRECT ANSWER: elastic; elastic
Economic analysis of the relationship between taxation and work reveals that: -
CORRECT ANSWER: high taxes may discourage work effort, causing output and
income to fall.
For each of the following, determine which group would have higher Social Security
Wealth (SSW), all other things equal. Explain your answers.
(a) male or female
(b) born in 1925 or born in 1985
(c) single or married(
d) low-wage earner or high-wage earner
(e) single-earner couple or double-earner couple - CORRECT ANSWER: a) Even
though both males and females pay the same taxes, females will have higher SSW
because females tend to live longer than males, so they receive benefits for a longer
time.
, b) People born in 1925 would have a higher SSW because population growth got
smaller starting in the 70s. Also, tax rate growth and wages played a factor.
c) Someone that is married would have higher SSW because spouses of workers are
entitled to 50% of the workers' benefits, and whoever survives receives 100% of the
workers' benefits. Other words, a married worker gets their own benefits, but also their
spouses as well.
d) Based on how social security redistributes income, low-wage workers would have
higher SSW.
e) Single-earner couple would have higher SSW. The two-earner couple has to pay
taxes on their earnings.
For which of the following events is the consumption-smoothing benefit from first-dollar
coverage small? - CORRECT ANSWER: predictable events
If a person has imperfect or partial self-insurance against job loss, they are likely to: -
CORRECT ANSWER: smooth consumption to some extent, but not fully
If the payroll tax were to be lowered, empirical evidence suggests that: - CORRECT
ANSWER: secondary earners would work more hours.
If the tax rate on income is given by t and the wage is given by w, what is the after-tax
wage? - CORRECT ANSWER: w(1 - t)
In 2015, the lowest tax rate on taxable income was ________, while the highest tax rate
on taxable income was _________. - CORRECT ANSWER: 10%; 39.6%
In order to maintain a stable pay-as-you-go Social Security system when people are
living longer: - CORRECT ANSWER: average benefits could be reduced and the payroll
tax rate could be increased.
Actual Exam from Credible Source with 70
Questions and 100% Verified Detailed Correct
Answers Guaranteed A+ Approved by Professor
A market equilibrium in which all types of individuals buy full insurance even though it is
not fairly priced to all individuals is called a _________ equilibrium and occurs when all
consumers are ___________. - CORRECT ANSWER: pooling; risk averse
A tax levied on producers is fully shifted to producers when - CORRECT ANSWER:
supply is perfectly inelastic
All other things equal, the deadweight loss of a tax on producers is higher when supply
is ________. All other things equal, the deadweight loss of a tax on producers is higher
when demand is __________. - CORRECT ANSWER: elastic; elastic
Economic analysis of the relationship between taxation and work reveals that: -
CORRECT ANSWER: high taxes may discourage work effort, causing output and
income to fall.
For each of the following, determine which group would have higher Social Security
Wealth (SSW), all other things equal. Explain your answers.
(a) male or female
(b) born in 1925 or born in 1985
(c) single or married(
d) low-wage earner or high-wage earner
(e) single-earner couple or double-earner couple - CORRECT ANSWER: a) Even
though both males and females pay the same taxes, females will have higher SSW
because females tend to live longer than males, so they receive benefits for a longer
time.
, b) People born in 1925 would have a higher SSW because population growth got
smaller starting in the 70s. Also, tax rate growth and wages played a factor.
c) Someone that is married would have higher SSW because spouses of workers are
entitled to 50% of the workers' benefits, and whoever survives receives 100% of the
workers' benefits. Other words, a married worker gets their own benefits, but also their
spouses as well.
d) Based on how social security redistributes income, low-wage workers would have
higher SSW.
e) Single-earner couple would have higher SSW. The two-earner couple has to pay
taxes on their earnings.
For which of the following events is the consumption-smoothing benefit from first-dollar
coverage small? - CORRECT ANSWER: predictable events
If a person has imperfect or partial self-insurance against job loss, they are likely to: -
CORRECT ANSWER: smooth consumption to some extent, but not fully
If the payroll tax were to be lowered, empirical evidence suggests that: - CORRECT
ANSWER: secondary earners would work more hours.
If the tax rate on income is given by t and the wage is given by w, what is the after-tax
wage? - CORRECT ANSWER: w(1 - t)
In 2015, the lowest tax rate on taxable income was ________, while the highest tax rate
on taxable income was _________. - CORRECT ANSWER: 10%; 39.6%
In order to maintain a stable pay-as-you-go Social Security system when people are
living longer: - CORRECT ANSWER: average benefits could be reduced and the payroll
tax rate could be increased.
