During the bureaucratic bargaining process, if the legislature tries to counteroffer by saying it wants less output at a given price, the bureau’s can employ the strategy of _____. a. saying no b. telling the legislature that reducing the output would endanger lives c. telling the legislature that at the lower output, the price per […]
If a city were to ban the use of automobiles within its city limits, we would expect A) the demand curve for automobiles to shift to the left. B) people to move to another city. C) the demand curve for bicycles to shift to the left. D) the demand curve for automobiles to remain the […]
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 […]
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
The most significant form of revenue in developed countries is the income tax. a. True b. False ANSWER a
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 […]
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
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 […]
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
A sales tax is a type of consumption tax. a. True b. False ANSWER a
