It is correct to say that individuals _____ preferences and groups _____ preferences. a. have; have b. do not have; have c. do not have; do not have d. have; do no have ANSWER d
Date: September 9th, 2020
The use of a property tax to fund public schools is an example of _____. a. the benefit principle at work b. the ability-to-pay principle at work c. a compromise between the benefit and ability-to-pay principles d. the Ramsey rule at work ANSWER c
Date: September 9th, 2020
A key difference between clubs and government is _____. a. government requires everyone within its jurisdiction to participate b. government acts on behalf of the poor c. government is not frivolous, like most clubs d. government requires collective action ANSWER a
Date: September 9th, 2020
It is clear that government provision of education is not necessary _____. a. because of the existence of private schools b. from the size of positive externalities c. because of the lack of asymmetrical information between parents and teachers d. because education externalities are negatively inframarginal ANSWER a
Date: September 9th, 2020
Translating the preferences of each individual into the preferences of the group is _____. a. a challenge faced only by clubs b. a challenge faced by all collective decision making organizations c. inherent in all decision making d. a challenge faced only by government ANSWER b
Date: September 9th, 2020
The equilibrium level of regulation is where the marginal political benefits to the special interests are equal to the marginal political costs of the foregone regulation. a. True b. False ANSWER a
Date: September 9th, 2020
The benefit principle views _____. a. a tax as the price that is paid for a government-supplied activity b. all government activity as beneficial c. all taxes as being beneficial if they are spent in the public interest d. all Pareto-efficient moves as beneficial ANSWER a
Date: September 9th, 2020
The Coase Theorem does not imply which of the following? a. Resources will be allocated efficiently in the absence of transactions costs. b. Resources will move to their highest valued use in there are no transactions costs. c. The initial allocation of property rights does not matter to the parties involved. d. The allocation of […]
Date: September 9th, 2020
In 1940 _____ of the population over 25 had a college degree. a. less than 5 percent b. around 10 percent c. around 15 percent d. more than 20 percent ANSWER a
Date: September 9th, 2020
Helping the poor is not necessarily the same thing as promoting greater equality. a. True b. False ANSWER a
Date: September 9th, 2020
