Adverse selection occurs when A) a person takes more risks that are not known to the life insurance company because he has life insurance. B) a person buys life insurance because he has a risky lifestyle that is not known to the life insurance company. C) a person is a risk lover. D) pregnant women […]
Date: September 9th, 2020
As a result of the bargaining advantages enjoyed by bureaus, they will generally have budgets that are ____. a. are larger than optimal b. are smaller than optimal c. optimal d. unable to be characterized in a general manner ANSWER a
Date: September 9th, 2020
A sales tax is a type of consumption tax. a. True b. False ANSWER a
Date: September 9th, 2020
Consumers have been buying fewer CDs as downloadable music has become easier to purchase and use. We would represent this as A) a leftward shift of the demand curve for CDs. B) a rightward shift of the demand curve for CDs. C) a change in the price of CDs. D) a leftward shift of the […]
Date: September 9th, 2020
The legislature is at a bargaining disadvantage with a bureau because _____. a. they have many bureaus to oversee b. its members reveal their demand for the good through speeches and public statements c. they typically obtain all their information from the bureau d. all of the above e. a and c ANSWER d […]
Date: September 9th, 2020
In bargaining between a bureau and the legislature over a budget, the legislature decides to purchase a certain amount of output at certain price and negotiates both simultaneously. This gives the bureau the opportunity to _____. a. minimize their effort b. extract all the legislature’s consumer surplus from the bureau’s output c. maximize the bureau’s […]
Date: September 9th, 2020
The fact that unsheltered saving is taxed under our current tax system creates a double tax on saving because _____. a. saving occurs out of after-tax income b. of IRAs c. investments earns such high rates of return d. consumption should be equalized with saving ANSWER a
Date: September 9th, 2020
One reason why it is very difficult to write optimal military procurement contracts is because _____. a. there are numerous possible producers b. the military purchases many goods c. new technology often has to be developed d. there are many possible consumers of the product ANSWER c
Date: September 9th, 2020
As people have become more health-conscious and decided to eat food that is better for them A) the demand curve for scooters has shifted to the right. B) the demand curve for cupcakes has shifted to the right. C) the demand curve for oranges and apples has shifted to the right. D) None of the […]
Date: September 9th, 2020
Which of the following is not a bargaining advantage enjoyed by bureau’s? a. They only have one legislature to deal with so bureaus are quite experienced in extracting a favorable budget agreement. b. The legislature typically gets all information on the bureau from the bureau itself. c. The bureaus have the ability to go out […]
Date: September 9th, 2020
