One advantage of a value added tax over a sales tax is _____. a. that it does not require that retail and wholesale purchases be distinguishable b. it is easier to compute c. it is easier for taxpayers to see and compute d. it is easier to collect ANSWER a
Date: September 9th, 2020
While cyclical majorities can lead to unstable outcomes, they generally do not because of _____. a. rational ignorance b. double-peaked preferences c. political institutions d. majority rule ANSWER c
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
Compared to a valued added tax, a sales tax is _____. a. easier to monitor b. easier to apply to investment goods c. harder to collect d. all of the above e. a and b ANSWER e
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
