Both Sally and Sam receive a 10% raise in a single year. Sally increases her demand for ground beef whereas Sam decreases his demand for ground beef. A) This is impossible. B) This is only possible if Sally considers ground beef an inferior good, and Sam views it as a normal good. C) This is […]
Date: September 9th, 2020
An income tax to pay for national defense can approximate a _____ if there is a close relationship between income and _____. a. user charge; wealth b. unit tax; wealth c. user charge; consumption d. sales tax; consumption ANSWER a
Date: September 9th, 2020
The original rationale for government involvement in health care was _____. a. in helping to prevent and control contagious disease b. the dissemination of health care information c. the provision of health care insurance for the needy d. the provision of health care for the elderly ANSWER a
Date: September 9th, 2020
Which of the following is not an assumption of the medium voter model? a. Voters can place all election alternatives along a one-dimensional continuum. b. Voters always vote their true preference. c. Voters prefer alternative closer to their preferred outcome. d. Voters engage in preference falsification. ANSWER d
Date: September 9th, 2020
One advantage of user charges is they _____. a. increase with inflation b. they apply the ability-to-pay principle of taxation c. help ration consumption of the taxed good d. a and c ANSWER c
Date: September 9th, 2020
Which of the following is an assumption of the median voter model? a. Voters are assumed to have heterogeneous preferences. b. Voters are assumed to be able to place all possible election outcomes within a one-dimensional continuum. c. Voters are assumed to have homogenous preferences. d. Voters are assumed to be able to compare current […]
Date: September 9th, 2020
One reason the supply and demand model might not be appropriate to the health-care industry? A) Consumers do not have full information. B) Providers do not know the demand for health-care services. C) Consumers do not know how to value their own health. D) The costs of finding a doctor are too low. ANSWER […]
Date: September 9th, 2020
Which of the following is not a rationale for government involvement in health care markets? a. Government involvement is necessary to prevent the spread of contagious diseases, which are type of externality. b. Government involvement is necessary to provide individuals with information on the quality of health care by regulating drugs and physicians. c. Government […]
Date: September 9th, 2020
One rationale for government involvement in health care markets is that government involvement is necessary to prevent the spread of contagious diseases, which can be a type of externality. Which of the following is not an example of a public health externality? a. The provision of vaccinations against communicable diseases. b. The provision of clean […]
Date: September 9th, 2020
Which of the following is not an advantage of user charges? a. User charges help ration consumption of the taxed good. b. User charges are equitable from the standpoint of the benefit principle of taxation. c. User charges reveal consumer preferences for the taxed good. d. User chargers are easy to apply in cases where […]
Date: September 9th, 2020
