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
The problem of moral hazard in health insurance _____. a. drives up health care costs b. exacerbates the adverse selection problem c. can cause individuals to be more careful d. creates incentives to diet and regular exercise ANSWER a
Date: September 9th, 2020
Third parties generally cannot win elections under a majority vote system because _____. a. the original two parties make it illegal for third parties to exist b. the original two parties are able to use the power of incumbency to raise the large amount of money necessary to run a winnable election c. the original […]
Date: September 9th, 2020
Which of the following countries does not employ a value-added tax at the national level? a. France b. German c. United States d. Canada ANSWER c
Date: September 9th, 2020
If insurers charge everyone the same premium based on the average cost of insuring the entire group, _____. a. the poor will drop out because the premiums are too high b. the middle class individuals will drop out because they can self-insure c. the healthiest individuals in the market will drop out d. the sickest […]
Date: September 9th, 2020
The median voter model explanation for the landside victory of Ronald Reagan over Walter Mondale is that _____. a. Reagan was far closer to the median voter than Mondale b. Reagan was far more charismatic than Mondale c. Reagan was able to use the power of incumbency to overwhelm Mondale d. Reagan was able to […]
Date: September 9th, 2020
One way to limit the problem of adverse selection in health insurance is to _____. a. investigate fraudulent activity b. promote competition in health insurance markets c. charge premiums in proportion to the probability of making claims d. a and c ANSWER c
Date: September 9th, 2020
Compared to a sales tax, a value-added tax is _____. a. easier to calculate b. harder to collect c. easier to apply to investment goods d. easier to monitor ANSWER b
Date: September 9th, 2020
When a single candidate is chosen by majority vote in a democracy, the political systems _____. a. tend to become corrupted b. tend to be two-party systems c. tend to be one-party systems d. tend to be three-party systems ANSWER b
Date: September 9th, 2020
