Using potentially productive resources to try and obtain transfers from the government is called _____. a. vote trading b. logrolling c. agenda control d. rent seeking ANSWER d
Date: September 9th, 2020
The early 1980s “Star Wars” space-based defensive weapons system was an example of _____. a. economic warfare b. a military alliance c. negative externality d. undefined property rights ANSWER a
Date: September 9th, 2020
In the context of rent seeking, rents refer to _____. a. payments made to factors of production for private benefit that do not add anything to social output. b. payments made to politicians for private benefit that do not add anything to gross domestic product c. payments made to factors of production for private benefit […]
Date: September 9th, 2020
Tax paid on income from a rental property represents _____. a. a consumption tax b. double taxation c. progressive taxation d. estate taxation ANSWER b
Date: September 9th, 2020
The legislature is equivalent to a political market because _____. a. legislators are akin to price takers b. policies can be bought and sold c. legislators can be bought and sold d. logrolling allows legislators to trade amongst themselves ANSWER d
Date: September 9th, 2020
An arms race is an example of a _____. a. positive externality b. inframarginal positive externality c. Coasean solution d. prisoners’ dilemma ANSWER d
Date: September 9th, 2020
Sarah buys little stuffed animals for $5 each. They come in different varieties. If the producer stops making (retires) a certain variety, a stuffed animal of that variety will be worth $100; otherwise it is worth $0. There is 25% chance that any variety will be retired. For the purchase of an individual animal, what […]
Date: September 9th, 2020
Income taxes cause _____. a. individuals to substitute towards leisure b. individuals to substitute towards jobs with more in-kind benefits c. individuals to work in underground markets d. all of the above ANSWER d
Date: September 9th, 2020
Military force is most effective _____ a. when a country’s army has superior numbers b. when a country’s navy is superior c. if it causes the other side to back down d. if it causes the other side to waste resources ANSWER c
Date: September 9th, 2020
If everyone could participate in the logrolling process at low cost, _____. a. then logrolling would allocate resources efficiently b. the political benefits to politicians would fall c. political exchange would no longer be important d. decision-making costs would be astronomical ANSWER a
Date: September 9th, 2020
