Assuming that the median voter model accurately explains how public sector decision are made, resources will be allocated efficiently if _____. a. preferences are single-peaked and individuals prefer outcomes closer to their preferred outcome rather than outcomes farther away b. rational ignorance and cyclical majorities are not present c. resources were already allocated efficiently in […]
While Medicaid is targeted towards low-income individuals, exact qualifications are determined by _____. a. the Department of Health and Human Services b. state governments c. local governments d. judicial rulings ANSWER b
The Canadian health care system _____. a. is an example of a single-payer system b. provides universal coverage c. rations the use of specialists d. all of the above ANSWER d
User charges are identical to market prices. a. True b. False ANSWER b
Consider a policy proposal that aims to save small dairy farms by providing an annual lump sum subsidy to dairy farms with fewer than two hundred dairy cows. Why might this proposal pass, even if it benefits a few dairy farmers at the expense of the majority of voters? a. The program might only cost […]
Import taxes are levied to generate revenue and encourage imports. a. True b. False ANSWER b
When the government produces and sells water, some of the revenues earned represent taxation. a. True b. False ANSWER a
Special interests are _____ on political issues where they may receive concentrated benefits. a. stable b. cyclical c. rationally ignorant d. not rationally ignorant ANSWER d
Excise taxes constitute a large source of government revenue. a. True b. False ANSWER b
Medicare provides health care to _____. a. the elderly b. the needy c. the widowed d. the orphaned ANSWER a
