Actions based on the more general Pareto criteria are preferable to actions based on application of interpersonal utility calculations. a. True b. False ANSWER a
Date: September 9th, 2020
For private consumption goods, the optimal number of users is determined by the unanimity rule. a. True b. False ANSWER b
Date: September 9th, 2020
Suppose the market for a good is expressed as follows: Inverse demand: P = 200 – 2Q Inverse supply: P = 2Q What is the equilibrium if the government imposes a supply quota of 75 units? What is the equilibrium if the government imposes a supply quota of 25 units? ANSWER The market equilibrium […]
Date: September 9th, 2020
Provide four reasons for the changes observed in per-pupil spending during the latter half of the twentieth century. What will be an ideal response? ANSWER The first reason for the changes observed in per-pupil spending over that time period is that schools are using more resources than they were using in 1940 . For […]
Date: September 9th, 2020
Suppose the market for potatoes can be expressed as follows: Supply: QS = -20 + 10p Demand: QD = 400 – 20p If the government sets a maximum price of $10 per unit, what will be the quantity demanded and quantity supplied? ANSWER With a maximum price of $10, suppliers will sell only 80 […]
Date: September 9th, 2020
The relationship between education and productivity is easily quantified because causation clearly flows from education to increased productivity. a. True b. False ANSWER b
Date: September 9th, 2020
If the “Marginal Congestion Cost” for a public good is constant then the optimal number of users is infinite a. True b. False ANSWER b
Date: September 9th, 2020
A tax of $5 per airplane ticket is _____. a. a unit tax b. an ad valorem tax c. an income tax d. a value-added tax ANSWER a
Date: September 9th, 2020
If a college graduate makes $10,000 more than a high school graduate, we can safely say that the education imparted in college adds $10,000 to an individual’s income. a. True b. False ANSWER b
Date: September 9th, 2020
When collective agreement on a policy is 100 percent of all voters, external costs are minimized. a. True b. False ANSWER a
Date: September 9th, 2020
