Assuming that progressive taxation is desirable, a consumption tax calculated by subtracting saving from income would be preferable to a general sales-based consumption tax. a. True b. False ANSWER a
Date: September 9th, 2020
What is one of the most important benefits of the Internet? A) The Internet has increased asymmetric information. B) The Internet has reduced asymmetric information. C) The Internet has increased moral hazard. D) The Internet has increased transaction costs. ANSWER B
Date: September 9th, 2020
One strategy that can be used to establish expensive procurement contracts is to start a program with relatively low initial costs. This strategy might be an unintended consequence of _____. a. military alliances with nations producing needed military goods b. unexpectedly high development costs associated with new technology c. the political process d. the incentives […]
Date: September 9th, 2020
For a risk-neutral person, the expected utility associated with various levels of wealth A) is above the person’s utility function. B) is below the person’s utility function. C) is equal to the person’s utility function. D) does not exist. ANSWER C
Date: September 9th, 2020
Adverse selection occurs when A) a person takes more risks that are not known to the life insurance company because he has life insurance. B) a person buys life insurance because he has a risky lifestyle that is not known to the life insurance company. C) a person is a risk lover. D) pregnant women […]
Date: September 9th, 2020
As a result of the bargaining advantages enjoyed by bureaus, they will generally have budgets that are ____. a. are larger than optimal b. are smaller than optimal c. optimal d. unable to be characterized in a general manner ANSWER a
Date: September 9th, 2020
A sales tax is a type of consumption tax. a. True b. False ANSWER a
Date: September 9th, 2020
Military decisionmakers want to keep procurement costs low in order to increase the likelihood that the program will be approved. As a results, ______. a. maintenance costs on contracted output tend to be higher b. maintenance costs on contracted output tend to be lower c. maintenance costs on contracted output are minimized d. maintenance costs […]
Date: September 9th, 2020
Which of the following games involving the roll of a single die is a fair bet? A) Bet $1 and receive $1 if 3 or 4 comes up. B) Bet $1 and receive $1 if 3, 4, or 5 comes up. C) Bet $1 and receive $4 if 6 comes up. D) None of the […]
Date: September 9th, 2020
One way to get a government contractor to consider life-cycle costs is to _____. a. use a cost plus incentive fee contract b. use a cost plus fixed fee contract c. use a fixed fee plus contract d. also write a maintenance contract with the contractor ANSWER d
Date: September 9th, 2020
