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. […]
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 […]
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
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 […]
The relationship between education and productivity is easily quantified because causation clearly flows from education to increased productivity. a. True b. False ANSWER b
Representative democracy makes no sense from an economic point of view. a. True b. False ANSWER b
An ad valorem tax on suppliers causes the _____ to shift by a constant _____. a. supply curve; percentage b. supply curve; amount c. demand curve; percentage d. demand curve; amount ANSWER a
The above figure shows a consumer’s indifference curves for soda and all other goods. Assuming a budget of $100, derive the consumer’s demand for soda for prices of $4 and $10 per case of soda. Estimate the price elasticity of demand for soda. What will be an ideal response? ANSWER At a price of […]
An ad valorem tax on demanders causes the _____ to shift by a constant _____. a. supply curve; percentage b. supply curve; amount c. demand curve; percentage d. demand curve; amount ANSWER c
Give a brief overview of how education attainment and elementary and secondary education spending has changed in the United States since 1940 . What will be an ideal response? ANSWER The percentage of U.S. adults with a high school diploma has changed dramatically since 1940 . In 1940, 24.1 percent of adults had a […]
