Using the above figure and the Pareto criteria to determine the public interest, would a move from point A to point C be in the public interest? a. yes b. no c. possible, depending upon other factors d. cannot say using the Pareto criteria ANSWER d
Date: September 9th, 2020
Which of the following is not an institution used by government to secure rights? a. The police. b. The military. c. The courts. d. The copyright office. ANSWER d
Date: September 9th, 2020
Which of the following are reasons to consider the protective role of the state in an economic framework? a. The protection of rights is necessary for a functioning economy. b. The protection of rights comprises a large portion of the government spending. c. The protection of rights is necessary for international trade. d. Both a […]
Date: September 9th, 2020
Pareto optimality and Pareto superiority _____. a. concern only monetary gains and losses b. compare utility gains with utility losses c. do not require interpersonal utility comparisons d. are equivalent to the concept of economic efficiency ANSWER c
Date: September 9th, 2020
If the utility function (U) between food (F) and clothing (C) can be represented as U = , the marginal rate of substitution of clothing for food equals A) -C/F. B) -F/C. C) – . D) – . ANSWER A
Date: September 9th, 2020
Market exchange assumes that _____. a. there are no monopolies b. prisoner dilemmas are nonexistent c. parties to the exchange have well-defined property rights d. the public sector is failing its job ANSWER c
Date: September 9th, 2020
Employing utilitarianism as a measure of the public interest _____. a. is inconsistent with the concept of a social welfare function b. attempts to minimize the problems associated with market failure c. attempts to maximize total utility in a society d. avoids comparing individual’s utilities ANSWER c
Date: September 9th, 2020
Which of the following is not a drawback of utilitarianism? a. There exists no valid way to make interpersonal utility comparisons. b. Is incompatible with the Pareto criteria. c. It is not directly compatible with economic efficiency. d. It implies social arrangements that most people would find objectionable. ANSWER b
Date: September 9th, 2020
The subject matter of public economics falls into the two general categories of _____ and _____. a. public interest; private interest b. coercion action; individual liberty c. revenue generation; government spending d. civilian activities; military duties ANSWER c
Date: September 9th, 2020
Which of these is not a valid reason for government intervention into mutually beneficial exchange? a. The market system might not function at all without government protecting certain rights b. The market system produces an efficient outcome that the majority does not like c. The government might be able to undertake some activities more efficiently […]
Date: September 9th, 2020
