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
Insufficient _____ can make regulation counterproductive. a. information b. funding c. monitoring d. time ANSWER a
Date: September 9th, 2020
Which of the following statements about the social welfare function is not true? a. It can be thought of as a set of indifference curves that depict the wealth of the entire society. b. It does not employ interpersonal utility comparisons. c. It is one possible method for evaluating the public interest/ d. It allows […]
Date: September 9th, 2020
Government regulators know that pollution is a problem in Cleveland. However, information on the social cost of this externality is difficult to come by. Which of the following statements best describes how this information problem might manifest itself? a. Well-intentioned regulators monitor a handful of polluting factors and are unable to determine how much they […]
Date: September 9th, 2020
If compared against other criteria for evaluating the public interest, the social welfare function is most comparable to _____. a. utilitarianism b. the Pareto criteria c. the potential compensation criterion d. cost-benefit analysis ANSWER a
Date: September 9th, 2020
Positive economic analysis _____. a. evaluates policy changes and determines whether it is a good idea b. seeks to understand the outcome of a policy change c. cannot be proven incorrect d. is a statement about “what ought to be” ANSWER b
Date: September 9th, 2020
The capture theory of regulation states that _____. a. regulators act in the best interests of regulators b. regulators act in the best interests of politicians c. regulators act in the best interests of the general public d. regulators act in the best interests of the regulated ANSWER d
Date: September 9th, 2020
Normative economic analysis _____. a. is concerned only with the facts b. is a statement about the relationship between a policy change an outcome c. judges the desirability of a policy change d. does not involve value judgments ANSWER c
Date: September 9th, 2020
