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 […]
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 […]
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
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
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
