The quantity demanded for a good A) must equal the quantity actually sold. B) can be less than the quantity actually sold. C) can be greater than the quantity actually sold. D) is always greater than the quantity actually sold. ANSWER C
Date: September 9th, 2020
A federal system of governments can limit the problems posed by special interests because _____. a. it provides voters with other governments to compare to their own b. it increases the number of legislatures to oversee the bureaucracies c. it decreases rational ignorance d. b and c ANSWER a
Date: September 9th, 2020
It is easy to define income for tax purposes. a. True b. False ANSWER b
Date: September 9th, 2020
The decline in the percentage of the federal government’s budget devoted to national defense is evidence of the lack of new demand for U.S. military activity. a. True b. False ANSWER b
Date: September 9th, 2020
If adverse selection exists in a market, A) it increases consumer surplus but reduces producer surplus. B) it reduces consumer and producer surplus. C) it reduces producer surplus but has no impact on consumer surplus. D) it increases both consumer and producer surplus. ANSWER B
Date: September 9th, 2020
One advantage of fiscal federalism is that its decentralized nature _____. a. allows for more rigid rules b. gives voters more choice c. creates thousands of bureaucracies d. forces local governments to collude with one another ANSWER b
Date: September 9th, 2020
Tax laws treat all in-kind payments as taxable income to the employers. a. True b. False ANSWER b
Date: September 9th, 2020
In 2000, total United States spending on national defense was less than five percent of GDP. a. True b. False ANSWER a
Date: September 9th, 2020
The above figure shows the payoffs to two airlines, A and B, of serving a particular route. Is there a Nash equilibrium? What is it? Explain. What will be an ideal response? ANSWER Firm A entering and firm B not entering is the Nash equilibrium. Entering is firm A’s dominant strategy. It will enter […]
Date: September 9th, 2020
Individuals conscripted into military service _____. a. are forced to work for less than the market wage b. bear a heavy tax burden c. are not necessarily those with a comparative advantage in being a soldier d. all of the above ANSWER d
Date: September 9th, 2020
