The sustainable flow of purchasing power available to an individual is equal to _____. a. the Fisher definition of income. b. the Haig-Simons definition of income c. consumption d. investment ANSWER a
Date: September 9th, 2020
Logrolling _____. a. impedes the work of special interest groups b. makes it easier for politicians to pass special interest legislation c. decreases the total quantity of special interest benefits d. does not depend on the rational ignorance of voters ANSWER b
Date: September 9th, 2020
All else held constant, as the variance of a payoff increases, the A) expected value of the payoff increases. B) risk of the payoff increases. C) expected value of the payoff decreases. D) risk of the payoff decreases. ANSWER B
Date: September 9th, 2020
The geographic organization of the U.S. Congress into districts _____. a. sometimes encourages and sometimes discourages the representation of special interests depending upon the shape of the size of the government program b. has no relationship to the representation of special interests c. discourages the representation of special interests d. encourages the representation of special […]
Date: September 9th, 2020
By providing in-kind benefits such as company cars, a company benefits because _____. a. they can pay less for employees b. their employees are late less frequently c. employees are grateful d. they are taxed as ordinary income not business expenses ANSWER a
Date: September 9th, 2020
The optimal level of military expenditures is the level at which _____. a. a country is completely protected from foreign invasion b. a country spends more on national defense than all other countries along it to win an arms race c. a country spends more on national than its rivals d. the marginal benefit of […]
Date: September 9th, 2020
The game rock-paper-scissors has A) a mixed strategy equilibrium. B) a dominant strategy equilibrium. C) no equilibrium. D) a pure strategy equilibrium. ANSWER A
Date: September 9th, 2020
Your friend Diana tells you that she thinks that her favorite softball team has a 70% chance of winning the next game because that is exactly the winning rate of her team in the last two seasons. This is an example of a(n) A) objective probability. B) subjective probability. C) risk-averse statement. D) Friedman-Savage preference. […]
Date: September 9th, 2020
The dollar value of the maximum amount one can consume over a given period without reducing the value of one’s wealth is the _____. a. definition of income used to approximate in-kind benefits b. Fisher definition of income c. Laffer definition of income d. Haig-Simons definition of income ANSWER d
Date: September 9th, 2020
When an employer provides in-kind benefits to employees, the In-kind benefits are _____. a. never taxed as income b. sometimes taxed as income c. always taxed as income d. always taxed as consumption ANSWER b
Date: September 9th, 2020
