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 […]
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 […]
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
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
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
In the above figure, Graph D with Capital on the vertical axis and labor on the horizontal axis implies that A) the marginal product of labor is increasing as more labor is employed. B) the marginal product of labor is decreasing as more labor is employed. C) the capital and labor are perfect substitutes. D) […]
In which of the following cases does the benefit principle provide little guidance? a. The benefits of the program are spread throughout the population. b. Gasoline taxes are used to fund highways. c. It is difficult to identify the beneficiaries of government programs. d. In cases a and c. e. In none of the above […]
Empirical evidence seems to suggest that there is _____ between education and education. a. a strongly positive link b. a weakly positive link c. no link d. a weakly negative link ANSWER c
Political decisions will be _____ only if the decision was approved by _____. a. Pareto improvements; a unanimous vote b. in the public interest; a majority vote c. Pareto improvements; a majority vote d. undertaken; a unanimous vote ANSWER a
One reason education expenditures are increasing is that a larger percentage of resources are now being used on _____ expenditures. a. teacher aide b. non-classroom c. teacher salary d. textbook ANSWER b
