• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/24

Click to flip

24 Cards in this Set

  • Front
  • Back
The adoption of land use regulations is economically justified by...

a) the existence of externalities from land use

b) the fact that land is a public good

c) the lack of competition between sellers in land markets
a) the existence of externalities from land use
Nuisance zoning...

a) restricts the output level of companies if the production is a nuisance to the neighbors

b) imposes taxes on properties that are nuisances

c) restricts the location of properties that might become nuisances
c) restricts the location of properties that might become nuisances
Fiscal zoning is a type of regulation that...

a) impose taxes on properties that cause negative externalities

b) restricts the location of developments that could increase the cost of providing government services

c) impose higher taxes on properties in certain areas to fund the construction of infrastructure
b) restricts the location of developments that could increase the cost of providing government services
Pigouvean tax is...

a) a tax imposed on activities that cause negative externalities

b) the price that the government charges for pollution permits

c) a tax imposed on the sales of tradable development rights
a) a tax imposed on activities that cause negative externalities
Large lot zoning causes ______ in the city that adopts this type of zoning.

a) a decrease in the supply of low skilled workers

b) an increase in the supply of low skilled workers

c) an increase in the demand for low skilled workers
a) a decrease in the supply of low skilled workers
Urban growth controls are...

a) policies to stimulate economic development through the attraction of business investments

b) policies that stimulate greater population growth

c) policies that restrict population growth and/or urban sprawl
c) policies that restrict population growth and/or urban sprawl
An urban growth boundary is...

a) a regulation that outlaws land development outside the boundary

b) a policy that denies local government services outside the boundary

c) the location of the expected border of the city in the foreseeable future
a) a regulation that outlaws land development outside the boundary
When an urban growth boundary is imposed, the value of undeveloped land located just outside the boundary of a growing city tends to...

a) increase because future land rents will likely be higher than it was expected before

b) decrease because future land rents will likely be lower than it was expected before

c) stay the same because it is given by farm land rents, which are not affected
b) decrease because future land rents will likely be lower than it was expected before
A growing city with growth controls tend to have higher urban land values than a similar city without controls because...

a) growth controls are implemented through an increase in property taxes

b) growth controls make the city more friendly to businesses

c) growth controls improves the expected future quality of living of the city
c) growth controls improves the expected future quality of living of the city
In a growing city, urban growth controls ____________ housing filtering, making the cost of providing a given quality of housing structure to _______________.

a) speed up; decrease

b) slow down; decrease

c) slow down; increase
c) slow down; increase
Which of the following is not an external cost of driving a car?

a) health problems caused by pollution

b) waste of time due to traffic congestion

c) opportunity cost of time spent driving
c) opportunity cost of time spent driving
What is the optimal size of a congestion tax?

a) The tax should equal the benefit of driving to each driver

b) The tax should equal the marginal external cost measured at the social optimum amount of driving

c) The tax should equal the marginal private cost of driving measured at the free market equilibrium amount of driving
b) The tax should equal the marginal external cost measured at the social optimum amount of driving
In a monocentric city, what would be the expected effect of congestion pricing (imposed in central areas) on land rents?

a) land rents would decrease in the entire city

b) land rents would increase in the central area

c) land rents would decrease in the central area
b) land rents would increase in the central area
Congestion pricing has not been implemented in many places yet. One of the reasons is that...

a) the technology to enforce compliance is not effective (it would be too easy to evade).

b) the tax would be unpopular because it is regressive

c) past experience has shown that the tax does not reduce congestion significantly
b) the tax would be unpopular because it is regressive
In the U.S., mass transit typically imposes a lower _________ than car driving.

a) monetary cost

b) time cost

c) discomfort cost
a) monetary cost
Mass transit usage ______ income of households (holding other factors constant).

a) increases with higher

b) decreases with higher

c) is not related to
b) decreases with higher
Mass transit is heavily subsidized by the government. Which of the following is NOT an economic justification for the subsidization?

a) mass transit usage generates positive externalities

b) mass transit market is a natural monopoly

c) mass transit is a public good
b) mass transit market is a natural monopoly
A rail system has ____ than an equivalent bus system.

a) higher fixed costs

b) higher marginal cost per passenger

c) lower average cost per passenger
a) higher fixed costs
A rail system can be more worthwhile than a bus system if...

a) income level of potential users is low

b) potential user density is high

c) traffic congestion on roads is low
b) potential user density is high
Which of the following is an advantage of central provision of government services (rather than local provision)?

a) more political accountability

b) economies of scale in the provision

c) greater policy innovation
b) economies of scale in the provision
Transfer of resources between cities is needed to make local government policies more efficient due to...

a) economies of scale in government service provision

b) differences in natural resources available to each city (e.g., land and water availability, climate)

c) spillovers (externalities) from each city's policies
c) spillovers (externalities) from each city's policies
The burden of an excise tax falls more heavily on the side of the market (buyers or sellers) that...

a) is responsible for the collection and payment of the tax to the government

b) has a more elastic willingness to buy or sell

c) has a more inelastic willingness to buy or sell
c) has a more inelastic willingness to buy or sell
Consider the case where government services are not affected by property taxation. Also, the landowner, structure owner, and structure user are not the same person. In this case, the burden of a land tax falls on...

a) landowners

b) structure owners

c) structure users
a) landowners
Property tax capitalization refers to...

a) the changes in the quality of government services due to a change in property tax

b) an increase in property tax revenues due to increasing property values

c) a reduction in property values due to higher property taxes
c) a reduction in property values due to higher property taxes