If a public good never becomes congested _____. a. the optimal number of users is infinite b. it is evidence that it has been under produced c. marginal costs are equal to average costs across the entire range of output d. the marginal reduction in cost per user curve is flat ANSWER a
Date: September 9th, 2020
Which of the following are reasons for the increased centralization in school financing? a. The existence of diseconomies of scale in education. b. A desire by state education agencies to decentralize control. c. A desire to equalize funding across school districts. d. Increasing positive externalities from education as globalization increases. ANSWER c
Date: September 9th, 2020
The optimal collective decision rule is found where _____. a. decision-making costs are minimized b. the sum of the external and decision-making costs are minimized c. marginal political costs and marginal political benefits are equalized d. external costs are minimized ANSWER b
Date: September 9th, 2020
A tax that takes a smaller percentage of an individual’s income as their income rises is called a _____. a. proportional tax b. progressive tax c. sumptuary tax d. regressive tax ANSWER d
Date: September 9th, 2020
Economic status tends to be passed on from one generation to the next _____. a. regardless of the monetary wealth that is transmitted from parents to children b. because of the monetary wealth that is transmitted from parents to children c. in nearly all societies d. a and c ANSWER d
Date: September 9th, 2020
The percentage of elementary and secondary educational expenditures financed by the federal government _____ between 1940 and 2000. a. increased from 5 to 10 percent b. increased from 2 to 7 percent c. stayed relatively constant around 5 percent d. increased from 3 to 13 percent ANSWER b
Date: September 9th, 2020
As conflicts between principles of taxation are normative in nature, _____. a. agreement is easily reached b. disagreement cannot easily be resolved c. the benefit principle should be the proper default d. the Pareto criteria should be used instead ANSWER b
Date: September 9th, 2020
The optimal collective decision rule _____. a. will be 100 percent if collective decision-making costs are high b. will be simple majority rule if external costs are extremely large c. has declining external costs as voting rule moves from unanimity d. is likely to be less than majority rule ANSWER c
Date: September 9th, 2020
The equity argument for government financing of education _____. a. is dependent upon the socialization argument b. does not imply government financing c. does not imply government production d. is dependent upon externalities being inframarginal ANSWER c
Date: September 9th, 2020
Joe’s indifference map for lobster and soda is shown in the above figure along with his budget line. Will Joe choose point a? Explain your answer in terms both of MRS and the level of utility. What will be an ideal response? ANSWER Joe will not choose point a. Since the slope of his […]
Date: September 9th, 2020
