Which of the following is a way to tax leisure? a. Tax complements to leisure. b. Subsidize substitutes to leisure. c. Increase income taxes. d. Tax unearned income. ANSWER a
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
Political candidates tend to be very similar in a representative democracy because _____. a. most candidates are wealthy b. the average voter demands conformity c. of cyclical majorities d. party platforms converge toward the median voter ANSWER d
Date: September 9th, 2020
The distinction between public health problems and private health problems becomes blurred when _____. a. externalities are positive b. preferences are quasi-linear c. health insurance is unavailable d. health care spending is from public coffers ANSWER d
Date: September 9th, 2020
Which of the following have contributed to health insurance becoming commonplace during the latter half of the twentieth century? a. The tremendous rise in medical costs. b. The increase in fraternal order societies which provided health insurance. c. The growth of employer-provided health care. d. all of the above e. a and c ANSWER […]
Date: September 9th, 2020
A process of _____ among candidates in a representative democracy leads to the outcome preferred by the median voter. a. cheating b. political competition c. bargaining d. log-rolling ANSWER b
Date: September 9th, 2020
When attempting to determine if a sales tax is regressive or not, it is important to consider _____. a. bequests b. that a general sales tax is a consumption tax c. that people pay income taxes d. that individual’s incomes change over their lifetime ANSWER d
Date: September 9th, 2020
In general, the medium voter model can be described as a powerful model for _____. a. analyzing demand for public goods b. analyzing the dynamics of business cycles c. analyzing demand aggregation in a democracy d. analyzing the supply of politicians ANSWER c
Date: September 9th, 2020
Health insurance was not an important policy issues prior to 1940 because _____. a. less than 10 percent of the U.S. population had health insurance b. health care was so cheap c. of the widespread ability of local charitable hospitals d. most individuals were covered by veteran health benefits ANSWER a
Date: September 9th, 2020
