Cyclical majorities can occur when _____. a. voters have single-peaked preferences b. voters are rationally ignorant c. voters are irrationally ignorant d. voters do not have single-peaked preferences ANSWER d
Date: September 9th, 2020
One problem with traditional health insurance plans is _____. a. people have little choice over physicians b. it has eliminated employer-provided health care c. doctors have little incentive to economize d. patients spent too much time scrutinizing their bills ANSWER c
Date: September 9th, 2020
Why might a VAT be more popular politically than a retail sales tax? a. Its transparency appeals to voters. b. Its lack of transparency makes it easier to misunderstand its effects. c. It is more efficient per dollar raised. d. It is more consistent with the benefit principle of taxation. ANSWER b
Date: September 9th, 2020
Under comprehensive health insurance the level of output is determined where _____. a. supply equals demand b. demand equals zero c. supply is of unitary elasticity d. the insurer sets it ANSWER b
Date: September 9th, 2020
A _____ is when no one outcome can defeat all others by majority rule. a. cyclical majority b. single-peaked preference c. political business cycle d. political institution ANSWER a
Date: September 9th, 2020
If Option A costs $40 and yields 20 units of output and Option B costs $50 and yields 30 units of output, A) Option B and Option A are equally economically efficient. B) Option B is economically efficient relative to Option A. C) Option A is economically efficient relative to Option B. D) It is […]
Date: September 9th, 2020
Which state has a value-added tax? a. Ohio b. Texas c. New York d. Michigan ANSWER d
Date: September 9th, 2020
One way the incentive problems inherent in comprehensive health insurance can be mitigated is through _____. a. deductibles b. premiums c. reimbursements d. screenings ANSWER a
Date: September 9th, 2020
Voters who do not have single-peaked preferences _____. a. prefer outcomes closer to their most preferred outcome to outcomes further away b. do not necessarily prefer outcomes closer to their most preferred outcome to outcomes farther away c. prefer all outcomes the same d. are unable to weigh one outcome against another outcome, regardless of […]
Date: September 9th, 2020
Value-added taxes were introduced in the European Union _____. a. to get rid of inefficient transaction taxes b. to harmonize tax structures among nations c. to make taxes more equitable d. all of the above e. a and b ANSWER e
Date: September 9th, 2020
