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
If a nation’s level of military expenditures is just below the optimal level _____. a. the nation’s borders will be unprotected b. the nation will not be protecting its interests abroad c. the nation will not be projecting economic force d. it is unclear what the marginal cost will be ANSWER d
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
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
