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
“Americans hate broccoli.” “Because so few Americans like broccoli, average broccoli sales are lower in America then anywhere else.” Which of these two statements about the preferences of Americans is more accurate? Why? What will be an ideal response? ANSWER The second statement is more accurate because groups do not have preferences, only individuals […]
Date: September 9th, 2020
A unit tax has an advantage over an ad valorem tax in situations when _____. a. inflation is high b. it is easy to estimate the value of the good being taxed c. it is difficult to estimate the value of the good being taxed d. inflation is low ANSWER c
Date: September 9th, 2020
Provide arguments for and against education vouchers. What will be an ideal response? ANSWER Education vouchers are attractive policy options because they introduce competition into the public education system. The hope is that just like in other areas of life, choice and competition will increase the quality of goods provided and lower the cost. […]
Date: September 9th, 2020
List two economic reasons why representative democracy makes sense What will be an ideal response? ANSWER Representative democracy makes economic sense for two reasons. First, having fewer individuals involved in the decision-making process will lower the costs of making decisions. Second, there are benefits from specialization and having some individuals specialize in politics (or […]
Date: September 9th, 2020
Producers may respond to a unit tax by _____. a. increasing the value of each unit b. increasing the number of units sold c. differentiating their product line d. selling the product in bundles ANSWER a
Date: September 9th, 2020
Provide a description of the TIT FOR TAT strategy. Give a brief explanation of the importance of TIT FOR TAT strategy in Robert Axelrod’s computer tournaments and the implications of his results for public policy. What will be an ideal response? ANSWER The TIT FOR TAT Strategy is to cooperate as long as the […]
Date: September 9th, 2020
The most important difference between unit excise taxes and ad valorem excise taxes is _____. a. the unit tax will change in response to a change in the price of the taxed good, while the ad valorem tax will not b. the unit tax will not change in response to a change in the price […]
Date: September 9th, 2020
Does education increase economic growth? Explain your answer. What will be an ideal response? ANSWER Yes. While the relationship is not easily quantified, but there does seem to be a positive relationship between education and economic growth. At the same time, however, higher incomes (from economic growth) cause individuals to consume more education, so […]
Date: September 9th, 2020
A disadvantage of unit excise taxes is they create the incentive _____. a. for producers to favor smaller products over larger products b. for producers to favor expensive products over inexpensive products c. for buyers to purchase more of the good then they otherwise would d. for buyers to shift to substitute goods with ad […]
Date: September 9th, 2020
