Spending so much on arms that the economy of an adversary collapses is called market warfare. a. True b. False ANSWER b
Date: September 9th, 2020
Suppliers with a high supply elasticity will bear a ______ tax incidence, while suppliers with a low supply elasticity will bear a ______ tax incidence. A) lower; higher B) higher; lower C) lower or no; higher or full D) A and C ANSWER D
Date: September 9th, 2020
A risk-averse person’s expected utility function is A) decreasing. B) convex. C) concave. D) a straight line. ANSWER C
Date: September 9th, 2020
Logrolling creates a political market and campaign donations are the medium of exchange. a. True b. False ANSWER b
Date: September 9th, 2020
There are no justifications for tax rates above the revenue-maximizing point. a. True b. False ANSWER b
Date: September 9th, 2020
Dictatorships, whether stable or unstable, always have longer time horizons than U.S. presidents. a. True b. False ANSWER b
Date: September 9th, 2020
Special interest legislation is inefficient because of logrolling. a. True b. False ANSWER b
Date: September 9th, 2020
The income effect associated with an income tax occurs because the individual has to work more to make up for the income paid in taxation. a. True b. False ANSWER a
Date: September 9th, 2020
A rational person maximizes A) risk. B) return. C) expected utility. D) return variance. ANSWER C
Date: September 9th, 2020
There is no rational explanation how government can fund anti-smoking campaigns and tobacco subsidies simultaneously. a. True b. False ANSWER b
Date: September 9th, 2020
