The holdout problem arises when unanimous approval among members of a group is required_____. a. for a Pareto efficient move to occur b. for a Pareto superior move to occur c. for government to decide to undertake the project d. for government to be able to levy the tax to fund the project ANSWER […]
Date: September 9th, 2020
While limited in their practical applications, the real value of the Pareto criteria is in allowing the public interest to be judged without making interpersonal utility calculations. a. True b. False ANSWER a
Date: September 9th, 2020
Production and exchange is beneficial as long as the demand curve lies below the supply curve. a. True b. False ANSWER b
Date: September 9th, 2020
Jane is a dietician in a city that twenty years ago voted to restrict the number of dieticians in the city to five and to regulate their prices. Although the city has tripled in size during that time (and thus demand has increased), no new dietician licenses have been issued. Over the years Jane and […]
Date: September 9th, 2020
Coercion and force underlie government activity. a. True b. False ANSWER a
Date: September 9th, 2020
Nabamitta is a doctor in a foreign country. When she first began medical school the number of doctors in her country was strictly limited by the government. Although the barriers to becoming a doctor were high, she invested nearly a decade of her life attempting to get a license because she knew if she received […]
Date: September 9th, 2020
A government strong enough to protect individual rights is also strong enough to violate them. a. True b. False ANSWER a
Date: September 9th, 2020
Which of the following statements about economic efficiency is not true? a. Economic efficiency is equivalent to Pareto optimality. b. Economic efficiency can be determined normatively. c. Economic efficiency is superior to equity. d. Economic efficiency can be evaluated positively. ANSWER c
Date: September 9th, 2020
The political process can impede redistribution goals because _____. a. there are more stingy voters than generous voters b. there are more middle class voters than poor voters c. there are more dumb voters than smart voters d. there are more middle class politicians than poor politicians ANSWER b
Date: September 9th, 2020
Government price setting _____. a. prevents firms from lowering their prices b. creates barriers to entry c. helps enforce collusion among industry members d. all of the above ANSWER d
Date: September 9th, 2020
