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1. Which statement is correct?

a. Asset Taxes act like a tax on wealth instead of income

b. Consumption taxes are popular because of their progressivity

c. Value-added taxes attempt to discourage imports and encourage exports

d. All of the above

2. Which Statement is correct?

a. The Laffer Curve suggests that there is a tax rate that maximizes tax revenues.

b. Corporate taxes are popular because they dont affect most people

c. Prior to the passage of tax reform in 2017, the effective corporate tax rate in the US was over 30%

d. All of the above

3. Which statement is correct?

a. Lower tax rates have historically been correlated with higher growth rates in the US

b. The Rahn Curve suggests that there is a level of government spending that maximizes economic growth

c. The Value Added Tax is considered to be a more progressive tax

d. All of the Above

4. Taxing corporate assets (instead of income) would provide all of the following benefits except ___________.

a. Reduced risk of bankruptcy due to less leverage

b. Higher levels of investment from corporations

c. Less cyclical tax revenues

d. All of the above are benefits of an asset tax

5. _______________ is like insurance on bonds.

a. Collateralized Mortgage Obligations

b. Credit Default Swaps

c. NINJAs

d. Z-tranches

6. Transactions that arent through the exchange may be done through ____________.

a. Algorithmic trading

b. Co-location

c. Dark Pools

d. High Frequency Trades

7. ________________ is a market failure where goods are nonexcludable.

a. Asymmetric Information

b. Externalities

c. Monopolies

d. Public Goods

8. ________________ is the idea that regulation benefits industry.

a. Hegelian Dialectic

b. Iron Triangle

c. Public Choice

d. Regulatory Capture

9. The idea that corporations should focus on its owners is called _____________.

a. Corporate Social Responsibility

b. Corporate Governance

c. Social Democracy

d. Shareholder Wealth Maximization

10. Which of the following is NOT a method of aligning shareholders with managers

a. Threat of Hostile Takeover

b. Executive Stock Options

c. Direct Intervention

d. All of the above are methods

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