Efficiency of the median voter model outcome occurs when _____. a. Lindahl pricing is employed. b. a head tax is used to finance the policy c. progressive taxation is used to finance government d. special interests are non-existent ANSWER a
Date: September 9th, 2020
In a committee, any outcome preferred by any member can win. a. True b. False ANSWER b
Date: September 9th, 2020
Import taxes are levied to generate revenue and encourage imports. a. True b. False ANSWER b
Date: September 9th, 2020
Part B of the Medicare program covers _____ and is _____. a. pharmaceuticals; voluntary b. pharmaceuticals; mandatory c. physician costs; voluntary d. physician costs; mandatory ANSWER c
Date: September 9th, 2020
Politicians face strong incentives to favor _____ over _____. a. the rich; the middle class b. special interests; the public interest c. the rationally ignorant; special interests d. the future; the present ANSWER b
Date: September 9th, 2020
The Medicaid program is financed by _____. a. excise taxes b. state governments c. the federal government d. state governments and the federal government ANSWER d
Date: September 9th, 2020
Politicians have an incentive to favor short-run policies because _____ a. because voters suffer from myopia b. of special interests c. they may be voted out of office before long-run policies bear fruit d. of rational ignorance ANSWER c
Date: September 9th, 2020
The above figure shows Bobby’s indifference map for soda and juice. B1 indicates his original budget line. B2 indicates his budget line resulting from an increase in the price of soda. From the graph, one can conclude that A) Bobby views soda as an inferior good. B) Bobby’s demand for soda is perfectly inelastic. C) […]
Date: September 9th, 2020
A majority of federal revenue once came from tariffs. a. True b. False ANSWER a
Date: September 9th, 2020
Assuming that the median voter model accurately explains how public sector decision are made, resources will be allocated efficiently if _____. a. preferences are single-peaked and individuals prefer outcomes closer to their preferred outcome rather than outcomes farther away b. rational ignorance and cyclical majorities are not present c. resources were already allocated efficiently in […]
Date: September 9th, 2020
