A key difference between clubs and government is _____. a. government requires everyone within its jurisdiction to participate b. government acts on behalf of the poor c. government is not frivolous, like most clubs d. government requires collective action ANSWER a
Date: September 9th, 2020
It is clear that government provision of education is not necessary _____. a. because of the existence of private schools b. from the size of positive externalities c. because of the lack of asymmetrical information between parents and teachers d. because education externalities are negatively inframarginal ANSWER a
Date: September 9th, 2020
Translating the preferences of each individual into the preferences of the group is _____. a. a challenge faced only by clubs b. a challenge faced by all collective decision making organizations c. inherent in all decision making d. a challenge faced only by government ANSWER b
Date: September 9th, 2020
The equilibrium level of regulation is where the marginal political benefits to the special interests are equal to the marginal political costs of the foregone regulation. a. True b. False ANSWER a
Date: September 9th, 2020
The benefit principle views _____. a. a tax as the price that is paid for a government-supplied activity b. all government activity as beneficial c. all taxes as being beneficial if they are spent in the public interest d. all Pareto-efficient moves as beneficial ANSWER a
Date: September 9th, 2020
In the abstract, an omniscient government would have little power to move inefficient markets toward efficiency. a. True b. False ANSWER b
Date: September 9th, 2020
The Coase Theorem states that _____. a. in the absence of transactions costs, the allocation of resource will be independent of property right assignment b. in the absence of transactions costs, the allocation of resources will be dependent on property right assignment c. with transactions costs, the allocation of resources will be independent of property […]
Date: September 9th, 2020
The general public has strong incentives to be informed about regulations that impact them. a. True b. False ANSWER b
Date: September 9th, 2020
The Coase Theorem implies that when there are no costs to trading, _____. a. resources will move to their most valued uses, depending upon who gets the initial property rights b. resources will move to their most valued uses, regardless of who gets the initial property rights c. resources might be misallocated, depending upon the […]
Date: September 9th, 2020
Government regulations can create de facto monopoly results. a. True b. False ANSWER a
Date: September 9th, 2020
