Chapter4_StudyGuide - 1. Approximately what percentage of...

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1. Approximately what percentage of U.S. consumer spending was for durable goods in 2007? 29% 2. In determining one's personal income tax, taxable income is:  total income less deductions and  exemptions. 3. Which list provides, in order, examples of a private good, a public good, and a quasi-public good? DVD player, a weather warning system, higher education. 4. An external cost or external benefit is also known as a(n): spillover 5. The tax rates embodied in the Federal personal income tax are such that: the marginal tax rate is  higher than the average tax rate, causing the average tax rate to rise. 6. As it relates to a public good, nonexcludability means that: free riders cannot be barred from  receiving the benefits. 7. Approximately what percentage of state spending goes to finance education? 36 8. The U.S. Food Stamp program, which provides coupons that allow low-income individuals to buy food, is an illustration of: the redistributional function of government. 9. Listed in descending order of relative size, households divide their total incomes among: consumption  expenditures, taxes, and saving. 10. An industry is best defined as a group of firms that: produce identical or similar products. 11. Which of the following is a shortcoming of the market system? Certain goods will not be produced  because there is no way of excluding nonpaying ("free-rider") individuals from the associated  benefits. 12. Nonexcludability is the idea that: individuals who are unable or unwilling to pay for a good cannot  be excluded from the benefits provided by that product. 13. A firm is defined as a(n):
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This note was uploaded on 07/13/2011 for the course ECON 131 taught by Professor Staff during the Spring '03 term at Hawaii.

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Chapter4_StudyGuide - 1. Approximately what percentage of...

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