MCQ given by lecturers topic3

Question 1

1. According to Stantcheva (2021), what does the term ‘polarization of reality’ refer to?
   a) Republicans and Democrats have very different views on what the level of tax should
   be
   b) Republicans and Democrats have different beliefs about the true purposes of
   taxation
   c) Republicans and Democrats have very different perceptions about the current tax
   system in terms of levels of taxation and the distribution of taxation
   d) Republicans and Democrats have different views about the real effects of current
   taxes on incentives to work and save

Answer 1

c) Republicans and Democrats have very different perceptions about the current tax
system in terms of levels of taxation and the distribution of taxation

Question 2

In Stantcheva (2021), what was the purpose of the videos that participants were shown?
a) To convince them to support certain taxes
b) To inform them about features of the US economy and to teach them about the
effects of certain taxes
c) To inform them about certain taxes and to tell them why some kinds of taxes (e.g.
property taxes) are better than others (e.g. income taxes)
d) To inform them about the state of the U.S economy, to teach them and to persuade
them to support certain taxes

Answer 2

b) To inform them about features of the US economy and to teach them about the
effects of certain taxes

Question 3

In Stantcheva (2021), what conclusion is drawn about what people care about regarding tax
policy?
a) People care primarily about the consequences of taxation on incentives to work
b) People are primarily concerned about equity rather than efficiency
c) Those who misperceive the current tax system tend to support higher taxation on the
rich
d) The drivers of support for income tax differ from those that determine support for
inheritance tax (a.k.a. estate tax)

Answer 3

b) People are primarily concerned about equity rather than efficiency

Question 4

The article ‘Public support for Carbon taxation – Lessons from France’, investigated the
effects of what kind of policy?
a) A €50 per tonne increase in the carbon tax
b) A €50 per tonne increase in the carbon tax that would be made revenue neutral
through payments to low-income households
c) A €50 per tonne increase in the carbon tax that would be made revenue neutral
through a uniform payment to each household
d) A €50 increase in the carbon tax that would be used for green infrastructure
subsidies

Answer 4

c) A €50 per tonne increase in the carbon tax that would be made revenue neutral
through a uniform payment to each household

Question 5

Q5. In the CEPR article ‘Public support for Carbon taxation – Lessons from France’, which of the
following statements most precsiely summarises the main finding?
a) People do not support carbon tax because they are self-interested
b) People do not support a carbon tax, even a revenue-neutral one, because they are
pessimistic about how the tax will be used to reduce emissions
c) People do not support a carbon tax, even a revenue-neutral one, because they are
pessimistic about the effect of the tax on their net income
d) People are pessimistic about the effectiveness of any tax to tackle climate change

Answer 5

c) People do not support a carbon tax, even a revenue-neutral one, because they are
pessimistic about the effect of the tax on their net income

Question 6

In the Homonoff et al (2021) article on reducing the use of plastic bags, what kind of
policies are analysed?
a) Market based policies only (i.e. price changes)
b) Command-and-control policies (e.g. bans)
c) Both market-based policies and command-and-control policies
d) Voluntary plastic reduction policies and education policies

Answer 6

c) Both market-based policies and command-and-control policies

Question 7

In the Homonoff et al (2021) article on reducing the use of plastic bags, which of the
following is true:
a) The drop in plastic bag consumption following a small tax is in line with economic
models of price elasticity of demand
b) Social norms play a small role in reducing usage
c) What matters is how the tax changes the price, not how it is described
d) None of the above

Answer 7

d) None of the above

Question 8

In the Homonoff et al (2021) article on reducing the use of plastic bags, what term is used to
capture the non-price effect of a tax on usage?
a) Social multiplier effect
b) Loss aversion
c) Tax salience
d) None of the above

Answer 8

a) Social multiplier effect