MCQ reading 3

Question 1

According to Stantcheva (2021), what is the most important factor that correlates with support for income and estate taxes?
A. Concerns about efficiency
B. Social preferences and fairness concerns
C. Government transparency
D. Misinformation about tax rates

Answer 1

B. Social preferences and fairness concerns

Question 2

What does Stantcheva find regarding the role of partisan gaps in tax policy views?
A. Partisan gaps do not affect tax policy views
B. Efficiency concerns drive the partisan gap
C. Partisan gaps are primarily due to different views of fairness and social preferences
D. All political groups share similar views on redistribution

Answer 2

C. Partisan gaps are primarily due to different views of fairness and social preferences

Question 3

What was the impact of the “Efficiency” treatment in Stantcheva’s experiments regarding tax policy?
A. It significantly increased support for more progressive taxes
B. It decreased support for more progressive taxes
C. It had no effect on support for more progressive taxes
D. It polarized opinions further

Answer 3

C. It had no effect on support for more progressive taxes

Question 4

Stantcheva’s research indicates that when people are shown instructional videos about the effects of tax policies, which treatment had the greatest effect on increasing support for progressive taxes?
A. Redistribution treatment
B. Efficiency treatment
C. Economist treatment
D. All treatments had the same effect

Answer 4

A. Redistribution treatment

Question 5

In Stantcheva’s study, what is one of the main reasons people may have different views on the fairness of tax policies?
A. Differences in political affiliation
B. Misinformation about tax revenues
C. Variations in education levels
D. Differing levels of trust in the government’s efficiency

Answer 5

A. Differences in political affiliation

Question 6

According to Stantcheva, what is one of the major reasons people oppose progressive tax reforms despite having redistributive preferences?
A. They believe in trickle-down economics
B. They lack trust in economists
C. They have misperceptions about the current tax system
D. They are concerned about corporate taxes

Answer 6

C. They have misperceptions about the current tax system

Question 7

Which of the following treatments had the most impact on increasing support for progressive taxes in Stantcheva’s experiments?
A. Redistribution treatment
B. Efficiency treatment
C. Laffer treatment
D. None of the above

Answer 7

A. Redistribution treatment

Question 8

What does the term “polarization of reality” refer to in Stantcheva’s research?
A. Differences in knowledge levels between the wealthy and poor
B. Partisan disagreements about tax rates and policy goals
C. Divergent perceptions of economic facts between Republicans and Democrats
D. Misinformation in media about tax policy

Answer 8

C. Divergent perceptions of economic facts between Republicans and Democrats

Question 9

In Stantcheva’s study, which factor is most often prioritized over concerns about economic efficiency when forming opinions on tax policies?
A. Trust in the government
B. Fairness concerns
C. Political ideology
D. National budget deficits

Answer 9

B. Fairness concerns

Question 10

How does trust in government influence people’s tax policy preferences, according to Stantcheva?
A. Higher trust in government decreases support for redistribution
B. Higher trust in government increases support for progressive taxes
C. Trust in government is unrelated to tax policy preferences
D. Lower trust in government increases support for higher corporate taxes

Answer 10

B. Higher trust in government increases support for progressive taxes

Question 11

What does Stantcheva identify as the strongest predictor of support for income and estate taxes?
A. Economic growth concerns
B. Efficiency of government programs
C. Social preferences and fairness concerns
D. Perception of the current tax rates

Answer 11

C. Social preferences and fairness concerns

Question 12

Why do people who trust the government tend to support more progressive tax policies, even if they acknowledge economic costs?
A. They believe it will lead to better infrastructure
B. They think tax cuts will benefit the wealthy
C. They prioritize fairness and redistribution over efficiency
D. They distrust private-sector solutions

Answer 12

C. They prioritize fairness and redistribution over efficiency

Question 13

Stantcheva’s research shows that educational interventions like instructional videos can:
A. Increase public skepticism about taxes
B. Shift people’s views on tax policy, particularly regarding redistribution
C. Have no effect on people’s tax policy views
D. Reduce people’s support for government intervention

Answer 13

B. Shift people’s views on tax policy, particularly regarding redistribution

Question 14

What is one reason some people oppose progressive taxes despite fairness concerns, according to Stantcheva?
A. They believe in wealth accumulation
B. They think the government is inefficient and wasteful with tax revenue
C. They think lower taxes encourage more innovation
D. They have a strong belief in individual freedom

Answer 14

B. They think the government is inefficient and wasteful with tax revenue

Question 15

How do people’s definitions of fairness influence their tax policy preferences?
A. Those who believe in equality of opportunity support higher estate taxes
B. People focused on efficiency are more likely to favor high taxes
C. Everyone agrees that meritocracy should be the basis of tax policy
D. Definitions of fairness do not significantly affect tax policy preferences

Answer 15

A. Those who believe in equality of opportunity support higher estate taxes

Question 16

According to Stantcheva, what is the most important factor that correlates with support for income and estate taxes?
A. Concerns about efficiency
B. Social preferences and fairness concerns
C. Government transparency
D. Misinformation about tax rates

Answer 16

B. Social preferences and fairness concerns

Question 17

What does Stantcheva find regarding the role of partisan gaps in tax policy views?
A. Partisan gaps do not affect tax policy views
B. Efficiency concerns drive the partisan gap
C. Partisan gaps are primarily due to different views of fairness and social preferences
D. All political groups share similar views on redistribution

Answer 17

C. Partisan gaps are primarily due to different views of fairness and social preferences

Question 18

What was the impact of the “Efficiency” treatment in Stantcheva’s experiments regarding tax policy?
A. It significantly increased support for more progressive taxes
B. It decreased support for more progressive taxes
C. It had no effect on support for more progressive taxes
D. It polarized opinions further

Answer 18

C. It had no effect on support for more progressive taxes

Question 19

Stantcheva’s research indicates that when people are shown instructional videos about the effects of tax policies, which treatment had the greatest effect on increasing support for progressive taxes?
A. Redistribution treatment
B. Efficiency treatment
C. Economist treatment
D. All treatments had the same effect

Answer 19

A. Redistribution treatment

Question 20

In Stantcheva’s study, what is one of the main reasons people may have different views on the fairness of tax policies?
A. Differences in political affiliation
B. Misinformation about tax revenues
C. Variations in education levels
D. Differing levels of trust in the government’s efficiency

Answer 20

A. Differences in political affiliation

Question 21

According to Stantcheva, why do some people oppose progressive tax reforms despite supporting redistribution?
A. They believe tax cuts will stimulate economic growth
B. They underestimate the current level of inequality
C. They have misperceptions about the current tax system
D. They trust the government to handle tax revenues efficiently

Answer 21

C. They have misperceptions about the current tax system

Question 22

What does the term “polarization of reality” refer to in Stantcheva’s research?
A. Differences in knowledge levels between the wealthy and poor
B. Partisan disagreements about tax rates and policy goals
C. Divergent perceptions of economic facts between Republicans and Democrats
D. Misinformation in media about tax policy

Answer 22

C. Divergent perceptions of economic facts between Republicans and Democrats

Question 23

How does trust in government influence people’s tax policy preferences, according to Stantcheva?
A. Higher trust in government decreases support for redistribution
B. Higher trust in government increases support for progressive taxes
C. Trust in government is unrelated to tax policy preferences
D. Lower trust in government increases support for higher corporate taxes

Answer 23

B. Higher trust in government increases support for progressive taxes

Question 24

What is the primary predictor of support for income and estate taxes in Stantcheva’s research?
A. Economic growth concerns
B. Efficiency of government programs
C. Social preferences and fairness concerns
D. Perception of current tax rates

Answer 24

C. Social preferences and fairness concerns

Question 25

What is one of the major findings of Stantcheva’s research regarding the role of efficiency concerns in tax policy?
A. Efficiency concerns outweigh fairness concerns for most people
B. Fairness concerns tend to dominate efficiency concerns
C. Efficiency concerns completely drive support for regressive taxes
D. Both fairness and efficiency concerns have equal influence

Answer 25

B. Fairness concerns tend to dominate efficiency concerns

Question 26

In Stantcheva’s study, how do educational interventions (such as instructional videos) affect people’s tax policy views?
A. They reduce support for progressive taxation
B. They have no significant effect on policy views
C. They shift people’s views toward supporting more progressive taxes
D. They make people more aware of the complexity of tax policy but don’t change opinions

Answer 26

C. They shift people’s views toward supporting more progressive taxes

Question 27

What is a common misperception that respondents had about the U.S. tax system, according to Stantcheva’s study?
A. Respondents accurately estimated the income tax thresholds
B. Respondents overestimated the taxes paid by the top 1%
C. Respondents underestimated the taxes paid by median-income households
D. Respondents believed taxes were more progressive than they actually are

Answer 27

D. Respondents believed taxes were more progressive than they actually are

Question 28

How do definitions of fairness influence tax policy preferences, according to Stantcheva?
A. Those who believe in equality of opportunity support higher estate taxes
B. People focused on efficiency are more likely to favor higher taxes
C. Everyone agrees that meritocracy should guide tax policy
D. Definitions of fairness have no impact on policy preferences

Answer 28

A. Those who believe in equality of opportunity support higher estate taxes

Question 29

What does Stantcheva suggest about people’s ability to learn and update their views on economic policies?
A. People are generally resistant to changing their views
B. Simple educational content can change people’s opinions on taxes
C. Learning about policies has no impact on people’s preferences
D. People rely solely on political ideology when forming their tax views

Answer 29

B. Simple educational content can change people’s opinions on taxes

Question 30

What role do social preferences play in explaining partisan gaps in tax policy views?
A. Social preferences are less important than efficiency concerns
B. Social preferences explain most of the partisan gap
C. Republicans and Democrats have identical social preferences
D. Social preferences do not influence tax policy views

Answer 30

B. Social preferences explain most of the partisan gap

Question 31

What did Stantcheva find about respondents’ knowledge of historical tax rates in the U.S.?
A. Most respondents accurately estimated tax rates in the 1950s
B. Respondents believed that tax rates in the 1950s were much lower than they actually were
C. Respondents underestimated both current and historical tax rates
D. Respondents had no interest in learning about historical tax rates

Answer 31

B. Respondents believed that tax rates in the 1950s were much lower than they actually were

Question 32

According to Stantcheva’s findings, what is a significant barrier to support for more progressive tax policies?
A. A lack of awareness about tax cuts
B. Misperceptions about how progressive the current tax system is
C. Concerns about funding public programs
D. Belief that taxes are already too high for the wealthy

Answer 32

B. Misperceptions about how progressive the current tax system is

Question 33

Stantcheva’s research suggests that providing information about which factor is most likely to shift people’s support toward progressive taxation?
A. Trickle-down economic effects
B. Redistribution and fairness
C. Impact of tax cuts on businesses
D. Efficiency losses from taxes

Answer 33

B. Redistribution and fairness