If a public good never becomes congested _____. a. the optimal number of users is infinite b. it is evidence that it has been under produced c. marginal costs are equal to average costs across the entire range of output d. the marginal reduction in cost per user curve is flat ANSWER a
Date: September 9th, 2020
Which of the following are reasons for the increased centralization in school financing? a. The existence of diseconomies of scale in education. b. A desire by state education agencies to decentralize control. c. A desire to equalize funding across school districts. d. Increasing positive externalities from education as globalization increases. ANSWER c
Date: September 9th, 2020
The optimal size of a club that shares a public good _____. a. gets smaller if external costs decline b. gets larger if external costs decline c. gets smaller if congestion costs decline d. gets larger if congestion costs decline ANSWER d
Date: September 9th, 2020
Consider a world with three income earners. Individual A earns $20,000 and pays $1,000 in taxes. Individual B earns $50,000 and pays $5,000 in taxes. Individual C earns $100,000 and pays $2,000 in taxes. Which of the following best classifies the income tax system in this world? a. proportional b. progressive c. regressive d. none […]
Date: September 9th, 2020
As conflicts between principles of taxation are normative in nature, _____. a. agreement is easily reached b. disagreement cannot easily be resolved c. the benefit principle should be the proper default d. the Pareto criteria should be used instead ANSWER b
Date: September 9th, 2020
The optimal collective decision rule _____. a. will be 100 percent if collective decision-making costs are high b. will be simple majority rule if external costs are extremely large c. has declining external costs as voting rule moves from unanimity d. is likely to be less than majority rule ANSWER c
Date: September 9th, 2020
The equity argument for government financing of education _____. a. is dependent upon the socialization argument b. does not imply government financing c. does not imply government production d. is dependent upon externalities being inframarginal ANSWER c
Date: September 9th, 2020
Joe’s indifference map for lobster and soda is shown in the above figure along with his budget line. Will Joe choose point a? Explain your answer in terms both of MRS and the level of utility. What will be an ideal response? ANSWER Joe will not choose point a. Since the slope of his […]
Date: September 9th, 2020
Since 1940 the percentage of elementary and secondary educational expenditures financed by local governments _____. a. declined by around 10 percentage points b. increased by around 10 percentage points c. increased by around 5 percentage points d. declined by around 15 percentage points ANSWER d
Date: September 9th, 2020
In the context of collective decision-making, external costs are _____. a. the costs imposed on everyone in the group b. the costs imposed on those outside the group c. the costs imposed on those who voted for the decision d. the costs imposed on those harmed by the decision ANSWER d
Date: September 9th, 2020
