Which of the following statements about economic efficiency is not true? a. Economic efficiency is equivalent to Pareto optimality. b. Economic efficiency can be determined normatively. c. Economic efficiency is superior to equity. d. Economic efficiency can be evaluated positively. ANSWER c
Date: September 9th, 2020
The political process can impede redistribution goals because _____. a. there are more stingy voters than generous voters b. there are more middle class voters than poor voters c. there are more dumb voters than smart voters d. there are more middle class politicians than poor politicians ANSWER b
Date: September 9th, 2020
Government price setting _____. a. prevents firms from lowering their prices b. creates barriers to entry c. helps enforce collusion among industry members d. all of the above ANSWER d
Date: September 9th, 2020
Equity and efficiency _____. Thus, _____. a. are always consistent with each other; trade-offs between the two are necessary b. are never consistent with each other; trade-offs between the two are unnecessary c. might be consistent in certain situations; trade-offs between the two might be necessary d. might be consistent in certain situations, trade-offs between […]
Date: September 9th, 2020
Using the utilitarian criterion, it is possible that slavery could be in the public interest. a. True b. False ANSWER a
Date: September 9th, 2020
Normative analysis is very important to public finance because _____. a. public policy enacted by government is the result of voting by individuals b. positive analysis is full of value judgments c. we should be concerned with how the world works d. voluntary exchanges are economically efficient ANSWER a
Date: September 9th, 2020
The equilibrium level of regulation is _____. a. determined where marginal political gains to the special interests are equal to the marginal political costs of the foregone regulation b. determined where the marginal benefits from the regulation are equal to the marginal costs of the regulation c. determined where the marginal political benefits to the […]
Date: September 9th, 2020
The transitional gains trap is a _____. a. by-product of some types of regulation b. associated with the move from a socialist to a market society c. associated with the move from a communal to a socialist society d. by-product of changing the rate at which capital gains are taxed ANSWER a
Date: September 9th, 2020
Production and exchange is beneficial as long as the demand curve lies below the supply curve. a. True b. False ANSWER b
Date: September 9th, 2020
Jane is a dietician in a city that twenty years ago voted to restrict the number of dieticians in the city to five and to regulate their prices. Although the city has tripled in size during that time (and thus demand has increased), no new dietician licenses have been issued. Over the years Jane and […]
Date: September 9th, 2020
