It is often said that if we could get more individuals to study the issues and vote we could have significant change through the ballot box. While true in a technical sense, which of the following statements best explains why this outcome is ¬not likely to occur? a. Individuals have double-peaked preferences and thus cyclical […]
A Health Maintenance Organization is _____. a. a multi-doctor office b. a type of pre-paid health care c. a series of specialty hospitals d. increasingly rare ANSWER b
Under comprehensive health insurance the level of output is determined where _____. a. supply equals demand b. demand equals zero c. supply is of unitary elasticity d. the insurer sets it ANSWER b
A _____ is when no one outcome can defeat all others by majority rule. a. cyclical majority b. single-peaked preference c. political business cycle d. political institution ANSWER a
If Option A costs $40 and yields 20 units of output and Option B costs $50 and yields 30 units of output, A) Option B and Option A are equally economically efficient. B) Option B is economically efficient relative to Option A. C) Option A is economically efficient relative to Option B. D) It is […]
Which state has a value-added tax? a. Ohio b. Texas c. New York d. Michigan ANSWER d
One way the incentive problems inherent in comprehensive health insurance can be mitigated is through _____. a. deductibles b. premiums c. reimbursements d. screenings ANSWER a
Voters who do not have single-peaked preferences _____. a. prefer outcomes closer to their most preferred outcome to outcomes further away b. do not necessarily prefer outcomes closer to their most preferred outcome to outcomes farther away c. prefer all outcomes the same d. are unable to weigh one outcome against another outcome, regardless of […]
Value-added taxes were introduced in the European Union _____. a. to get rid of inefficient transaction taxes b. to harmonize tax structures among nations c. to make taxes more equitable d. all of the above e. a and b ANSWER e
One advantage of a value added tax over a sales tax is _____. a. that it does not require that retail and wholesale purchases be distinguishable b. it is easier to compute c. it is easier for taxpayers to see and compute d. it is easier to collect ANSWER a
