As people have become more health-conscious and decided to eat food that is better for them A) the demand curve for scooters has shifted to the right. B) the demand curve for cupcakes has shifted to the right. C) the demand curve for oranges and apples has shifted to the right. D) None of the […]
Date: September 9th, 2020
The idea behind a flat tax is to _____. a. cut taxes on high-income taxpayers b. to raise taxes on high-income taxpayers c. increase progressivity d. minimize the excess burden of the income tax ANSWER d
Date: September 9th, 2020
A person who starts practicing poisonous snake charming after signing a contract with a health insurance company is an example of A) moral hazard. B) adverse selection. C) signaling. D) screening. ANSWER A
Date: September 9th, 2020
A more complex view of the incentives facing a bureaucrat _____. a. shows that bureaucrats might prefer to maximize their discretionary budget over their total budget b. shows that bureaucrats might prefer to always act in the public interest, if they believe in their bureau’s mission. c. shows that the incentives facing a bureaucrat are […]
Date: September 9th, 2020
For procurement of conventional products like hammers and shovels, the most appropriate type of contract is ______. a. fixed fee b. cost plus fixed fee c. cost plus percentage fee d. cost plus incentive fee ANSWER a
Date: September 9th, 2020
If you sell your DVD player on eBay, you will be better informed about the quality of the product than any potential buyer. This is called A) adverse selection. B) asymmetric information. C) moral hazard. D) opportunistic behavior. ANSWER B
Date: September 9th, 2020
A major drawback to cost plus fixed fee contracts when compared to fixed fee contracts is _____. a. firms have an incentive to overbid b. the government must monitor the firm’s costs c. the government has an incentive to award bids to the worst companies d. there is an adverse selection problem ANSWER b […]
Date: September 9th, 2020
The excess burden of an income tax is a function of the _____. a. average tax rate b. flat tax rate c. marginal tax rate d. Laffer curve ANSWER c
Date: September 9th, 2020
Which of the following statements best describes why we cannot be assured that bureaucrats who believe in the mission of their bureaus will always act in the public interest? a. Logrolling among members of Congress ties the hands of the bureaucracy, preventing them from acting in the public interest. b. Bureaucrats do not personally benefit […]
Date: September 9th, 2020
When costs are uncertain, the type of procurement contract that will cover the uncertain costs plus an agreed-upon rate of return is _____. a. fixed fee b. cost plus fixed fee c. cost plus percentage fee d. cost plus incentive fee ANSWER c
Date: September 9th, 2020
