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 […]
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 […]
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 […]
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
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
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
From what viewpoint is a sales tax most likely to be considered regressive? a. If one considers lifetime consumption as equal to income. b. If one considers that many goods consume by low-income individuals are exempt from taxation. c. If one considers it as a consumption tax on current income. d. If one considers it […]
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
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
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 […]
