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 […]
Date: September 9th, 2020
Which state has a value-added tax? a. Ohio b. Texas c. New York d. Michigan ANSWER d
Date: September 9th, 2020
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
Date: September 9th, 2020
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 […]
Date: September 9th, 2020
The median voter model explanation for the landside victory of Ronald Reagan over Walter Mondale is that _____. a. Reagan was far closer to the median voter than Mondale b. Reagan was far more charismatic than Mondale c. Reagan was able to use the power of incumbency to overwhelm Mondale d. Reagan was able to […]
Date: September 9th, 2020
One way to limit the problem of adverse selection in health insurance is to _____. a. investigate fraudulent activity b. promote competition in health insurance markets c. charge premiums in proportion to the probability of making claims d. a and c ANSWER c
Date: September 9th, 2020
Compared to a sales tax, a value-added tax is _____. a. easier to calculate b. harder to collect c. easier to apply to investment goods d. easier to monitor ANSWER b
Date: September 9th, 2020
When a single candidate is chosen by majority vote in a democracy, the political systems _____. a. tend to become corrupted b. tend to be two-party systems c. tend to be one-party systems d. tend to be three-party systems ANSWER b
Date: September 9th, 2020
Compared to a valued added tax, a sales tax is _____. a. easier to monitor b. easier to apply to investment goods c. harder to collect d. all of the above e. a and b ANSWER e
Date: September 9th, 2020
The problem of moral hazard in health insurance _____. a. drives up health care costs b. exacerbates the adverse selection problem c. can cause individuals to be more careful d. creates incentives to diet and regular exercise ANSWER a
Date: September 9th, 2020
