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
Equilibrium in the market for special interest benefits is determined where _____. a. the marginal cost of lobbying politicians is equal to the marginal benefits received from government b. the marginal political opposition is equal to the marginal political support c. the marginal price of a vote for a program is equal to the marginal […]
Date: September 9th, 2020
A lottery game pays $500 with .001 probability and $0 otherwise. The variance of the payout is A) 15.8. B) 249.50. C) 249.75. D) 499. ANSWER C
Date: September 9th, 2020
If a payout is certain to occur, then the variance of that payout equals A) zero. B) one. C) the expected value. D) the expected value squared. ANSWER A
Date: September 9th, 2020
National defense is a public good _____. a. meaning it is an all-or-nothing proposition b. however it can be adjusted on the margin c. implying whatever output produced is efficient d. a and c ANSWER b
Date: September 9th, 2020
The fact that interest groups exist on both sides of an issue mean that _____. a. no special interest group gets everything it wants b. rational ignorance is nonexistent c. a prisoner’s dilemma exists d. politicians are exposed to all viewpoints on an issue ANSWER a
Date: September 9th, 2020
The above figure shows the market for a given product. Defining welfare as consumer surplus plus producer surplus, calculate the social welfare associated with perfect competition, single-price monopoly, and a perfect-price-discriminating monopoly. Which market structure(s) maximize social welfare? ANSWER Social welfare equals Perfect competition: A + B + C + D + E Single-price […]
Date: September 9th, 2020
Which of the following is not an in-kind benefit? a. A company life insurance policy. b. A company health plan. c. A company’s annual holiday bonus. d. A company car. ANSWER c
Date: September 9th, 2020
