When applied to committees, the median voter model concludes that _____. a. becomes irrelevant as committees will be unable to select a clear outcome b. the committee selects the outcome preferred by the median voter c. when preferences are double peaked, the committee meets the demand of the median voter d. a cyclical majority will […]
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 […]
The conclusion of the median voter model is that_____. a. private sector demands of the median voter influences their demand for public goods b. the median voter is omniscient c. public sector demand will be the demand of the median voter d. decision-making costs will be high if the median voter is rationally ignorant […]
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
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
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
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
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 […]
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 […]
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 […]
