The above figure shows Bob’s utility function, which is A) concave. B) convex. C) linear. D) L-shaped. ANSWER A
Date: September 9th, 2020
A fair game is a game in which the chances are 50-50 that you win or lose. Indicate whether the statement is true or false ANSWER False. A fair game is one in which the expected value of the payoff to the player is equal to the cost of playing.
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
Special interest legislation is inefficient because of logrolling. a. True b. False ANSWER b
Date: September 9th, 2020
A person that is risk averse A) exhibits decreasing marginal utility of wealth. B) exhibits increasing marginal utility of wealth. C) always engages in fair bets. D) loves lotteries. ANSWER A
Date: September 9th, 2020
The past two decades has seen a steady increase in the share of total taxes paid by high-income groups. a. True b. False ANSWER a
Date: September 9th, 2020
Fixed fee contracts are desirable when there is little uncertainty regarding the output. a. True b. False ANSWER a
Date: September 9th, 2020
Two identical firms are considering entering a new market that currently has no suppliers. The demand is large enough for both firms to make a positive profit. There are no fixed costs to enter. Explain how a simultaneous decision to enter on the part of the two firms will lead to a different outcome than […]
Date: September 9th, 2020
Other things equal, the more individuals in a special interest group, the more effect that special interest will be in securing political benefits. a. True b. False ANSWER a
Date: September 9th, 2020
