A increase in quantity demanded as a result of a change in price A) is a rightward shift of the demand curve. B) is a leftward shift of the demand curve. C) leaves the demand curve unchanged. D) is not possible. ANSWER C
Date: September 9th, 2020
Bureaucrats who believe in the mission of their bureaus will want to maximize their bureau’s budgets to further their perception of the public interest. a. True b. False ANSWER a
Date: September 9th, 2020
Rent seeking is inefficient logrolling leads to a misallocation of resources. a. True b. False ANSWER b
Date: September 9th, 2020
Assume an income tax was doubled. Describe what would happen to labor supply and leisure. Can we be about the net effect on labor supply? What will be an ideal response? ANSWER The doubling of the income tax is going to cause individuals to substitute away from the taxed activity, i.e., earning income. Thus […]
Date: September 9th, 2020
The American Economic Association limiting its presidential vote to only one candidate is an example of agenda control. a. True b. False ANSWER a
Date: September 9th, 2020
The revenue collected by an income tax is a function of the average tax rate. a. True b. False ANSWER a
Date: September 9th, 2020
If a person is risk averse, then she has negative marginal utility of wealth. Indicate whether the statement is true or false ANSWER False. The marginal utility of wealth is positive for the risk-averse person; however, marginal utility diminishes as wealth increases.
Date: September 9th, 2020
Which of the following reduces the effects of asymmetric information? A) repeat purchases B) warranties C) building a reputation D) All of the above. ANSWER D
Date: September 9th, 2020
An increase in the price of pork will lead to A) a movement up along the demand curve. B) a movement down along the demand curve. C) a rightward shift of the demand curve. D) a leftward shift of the demand curve. ANSWER A
Date: September 9th, 2020
A consumer is likely to avoid adverse selection and get a high-quality lunch at A) a snack bar at a traveling carnival. B) a vendor who parks her cart at a different location every noon. C) a restaurant in the center of a business district. D) a restaurant located next door to Disneyland. ANSWER […]
Date: September 9th, 2020
