Make an argument for user charges being both efficient and equitable. What information can user charges provide us that free provision can not? What will be an ideal response? ANSWER User charges can be considered equitable from the benefit principle of taxation since individuals have to pay in proportion to the benefits they receive […]
If voters do not have single-peaked preferences then a cyclical majority will arise. a. True b. False ANSWER b
The tax base of the value added tax and a turnover tax are the same. a. True b. False ANSWER b
Skin cancer creates a public health externality. a. True b. False ANSWER b
If issues can be ranked along a one-dimensional continuum, a successful political candidate will be an individual who is best able to align her political platform to the positions of the median voter. a. True b. False ANSWER a
Consider a situation where a government is deciding between two different taxes on beer. The first tax is $2.88 per case and the second is a tax of one cent per ounce placed on beer. Both are paid by the supplier. Assume both will raise the same amount of revenue this period. Pretend you are […]
The creation of Medicare and Medicaid in 1965 dealt with contemporary public health concerns. a. True b. False ANSWER b
In order to survive in political office, politicians must be steadfast in their convictions and be unwilling to change their political platforms. a. True b. False ANSWER b
If a general sales tax is enacted, we can predict with certainty that individuals will work less. a. True b. False ANSWER b
The referendum version of the median voter model allows voters to vote on a series of marginally increasing quantities of a good. a. True b. False ANSWER b
