The government has a monopoly on legitimate force. a. True b. False ANSWER a
Date: September 9th, 2020
Which of the following is not a problem with poorly defined property rights? a. Insufficient incentive exists to produce resources that cannot be protected. b. Resources will tend to be underutilized. c. Individuals may be able to use resources without paying for them. d. Little incentive to conserve on the use of poorly defined resources. […]
Date: September 9th, 2020
Eminent domain _____. a. is when government forces holdouts to sell b. can be used by special interest for public gain c. is the only way to solve the holdout problem d. a and b e. b and c ANSWER d
Date: September 9th, 2020
Suppose the following information is known about a market: 1. Sellers will not sell at all below a price of $2. 2. At a price of $10, any given seller will sell 10 units. 3. There are 100 identical sellers in the market. Assuming a linear supply curve, use this information to derive the market […]
Date: September 9th, 2020
The goal of equity is fundamentally a positive issue. a. True b. False ANSWER b
Date: September 9th, 2020
When attempting to build a shopping center the size of several city blocks a developer anticipates a holdout problem in his preferred location. Which of the following is not an option the developer has available to get around the holdout problem? a. Substituting to another location by building the shopping center on former farmland on […]
Date: September 9th, 2020
What is cost-benefit analysis? Suppose that you were asked to do a cost benefit analysis of tearing down an elderly woman’s ancestral home to provide space to expand a local high school. What difficulties might you encounter? What will be an ideal response? ANSWER In cost-benefit analysis, a dollar value is placed on all […]
Date: September 9th, 2020
Which of the following is not a possible solution to the holdout problem? a. eminent domain b. contingency contracts c. Dutch auction d. hiding your intentions ANSWER c
Date: September 9th, 2020
The above figure shows the short-run production function for Albert’s Pretzels. The average product of labor A) increases first and then decreases. B) decreases first and then increases. C) decreases throughout. D) increases throughout. ANSWER C
Date: September 9th, 2020
Public finance economists should only concern themselves with positive economic analysis. a. True b. False ANSWER b
Date: September 9th, 2020
