Nathan does not vote because he feels as he does not have a real choice. To him, “all politicians are exactly the same.” Which of the following statements might lend some credence to Nathan’s observation? a. In a representative democracy, politicians must appeal to the median voter if they hope to be successful. b. In […]
A major factor in the creation and proliferation of comprehensive health care insurance is _____. a. the health care tax credit b. the tax deductibility of employer-paid health plans c. the tremendous increase in the hard core poor d. the increase in low-cost lifesaving techniques ANSWER b
Which of the following is a way to tax leisure? a. Tax complements to leisure. b. Subsidize substitutes to leisure. c. Increase income taxes. d. Tax unearned income. ANSWER a
Which of the following statements does not follow from the median voter model? a. Party platforms tend to converge to the median. b. The farther a candidate is away from the median voter, the more support she will have. c. Third parties generally cannot win elections. d. Political candidates tend to be quite similar to […]
The problem of moral hazard arises because _____. a. individuals receive insurance through their employer, who has different incentives b. individuals with insurance have no incentive to avoid insured expenditures c. some individuals have religious objections to purchasing insurance d. some individuals are immoral ANSWER b
Political candidates tend to be very similar in a representative democracy because _____. a. most candidates are wealthy b. the average voter demands conformity c. of cyclical majorities d. party platforms converge toward the median voter ANSWER d
The distinction between public health problems and private health problems becomes blurred when _____. a. externalities are positive b. preferences are quasi-linear c. health insurance is unavailable d. health care spending is from public coffers ANSWER d
Which of the following have contributed to health insurance becoming commonplace during the latter half of the twentieth century? a. The tremendous rise in medical costs. b. The increase in fraternal order societies which provided health insurance. c. The growth of employer-provided health care. d. all of the above e. a and c ANSWER […]
A process of _____ among candidates in a representative democracy leads to the outcome preferred by the median voter. a. cheating b. political competition c. bargaining d. log-rolling ANSWER b
When attempting to determine if a sales tax is regressive or not, it is important to consider _____. a. bequests b. that a general sales tax is a consumption tax c. that people pay income taxes d. that individual’s incomes change over their lifetime ANSWER d
