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
The socialization rationale for public education implies that private schools _____. a. are more segregated along class and perhaps racial lines b. are more homogenous c. are often organized around an exclusionary orientation d. all of the above ANSWER d
Date: September 9th, 2020
Which of the following is not true of collective decision-making costs? a. They impede collective action. b. They are the reason why unanimity rule is not the optimal decision-making rule. c. They imply that simple majority rule is the optimal decision-making rule. d. They increase the closer the decision rule gets to unanimity. ANSWER […]
Date: September 9th, 2020
The principle of vertical equity is satisfied when _____. a. individuals with a greater ability to pay have higher taxes than individuals with a lower ability to pay b. individuals receiving higher benefits from a government program pay higher taxes than those receiving lower benefits c. taxes increase as family size increases d. taxes on […]
Date: September 9th, 2020
A problem with the socialization argument is that _____. a. the organization of public schools often lends itself to segregation b. it is unfair c. students need to learn to be good citizens d. public schools are open to everyone ANSWER a
Date: September 9th, 2020
Collective decision making costs _____. a. decrease as we get closer to unanimity b. increase as more people have to agree c. are an impediment to individual action d. are the reason why simple majority rule is always optimal ANSWER b
Date: September 9th, 2020
If 100% of individuals in a group are required to agree before an action can take place then _____. a. external costs will be high b. we cannot determine the level of external costs without additional information c. external costs will be zero d. external costs will be low ANSWER c
Date: September 9th, 2020
Two types of costs must be considered when selecting the optimal decision rule. They are _____ and _____. a. decision-making costs; external costs b. marginal costs; variable costs c. decision-making costs; political costs d. political costs; external costs ANSWER a
Date: September 9th, 2020
Which of the following are not subsets of the ability-to-pay principle? a. horizontal equity b. vertical equity c. diagonal equity d. beneficial equity ANSWER c
Date: September 9th, 2020
_____ increase as we move away from unanimity rule. a. External costs b. Internal costs c. Pareto efficiency d. decision-making costs ANSWER a
Date: September 9th, 2020
