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
Which of the following statements does not follow from the median voter model? a. Party platforms tend to converge to the median. b. The farther a candidate is away from the median voter, the more support she will have. c. Third parties generally cannot win elections. d. Political candidates tend to be quite similar to […]
Date: September 9th, 2020
The problem of moral hazard arises because _____. a. individuals receive insurance through their employer, who has different incentives b. individuals with insurance have no incentive to avoid insured expenditures c. some individuals have religious objections to purchasing insurance d. some individuals are immoral ANSWER b
Date: September 9th, 2020
Turnover taxes are inefficient because _____. a. they are easy to avoid b. they violate the ability-to-pay principle c. they violate the benefit principle d. they tax the same good multiple times ANSWER d
Date: September 9th, 2020
The median voter model suggests that _____. a. extreme candidates are unlikely to change positions over time b. extreme candidates have an easier time winning election because of the fervor of their supporters c. extreme candidates will have a difficult time winning election d. extreme candidates will be able to move a party’s platform to […]
Date: September 9th, 2020
The source of the adverse selection problem is ______. a. that individuals with high incomes are able to pay all medical costs out-of-pocket b. that individuals least likely to need health care do not purchase insurance c. individuals lack important information regarding the appropriate health care for them d. individuals desire to have comprehensive health […]
Date: September 9th, 2020
Value added taxes _____. a. have the same tax base as a consumption tax b. have the same tax base as an estate tax c. have the same tax base as a retail sales tax d. have the same tax bas as an income tax ANSWER c
Date: September 9th, 2020
The increase in extremely expensive lifesaving treatments is a primary cause of the rise in health insurance because _____. a. people want to protect against low probability, expensive events b. people view insurance as a down payment on a predicable event c. people want to protect against low probability, inexpensive events d. individuals want to […]
Date: September 9th, 2020
Political competition between candidates, especially attempts to paint one’s opponent as being extreme, shows that _____. a. the way to be a successful politician is to fight dirty b. cyclical majorities will never exist c. there is an opportunity for third parties d. politicians implicitly accept the validity of the median voter model ANSWER […]
Date: September 9th, 2020
We cannot be certain that a general sales tax will decrease labor supply because _____. a. of the effect of lower income on labor supply b. of the effect of higher tax revenue on consumption c. of the effect of the sales tax on labor supply d. we do not know about labor demand […]
Date: September 9th, 2020
