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
Insufficient _____ can make regulation counterproductive. a. information b. funding c. monitoring d. time ANSWER a
Date: September 9th, 2020
Which of the following statements about the social welfare function is not true? a. It can be thought of as a set of indifference curves that depict the wealth of the entire society. b. It does not employ interpersonal utility comparisons. c. It is one possible method for evaluating the public interest/ d. It allows […]
Date: September 9th, 2020
Government regulators know that pollution is a problem in Cleveland. However, information on the social cost of this externality is difficult to come by. Which of the following statements best describes how this information problem might manifest itself? a. Well-intentioned regulators monitor a handful of polluting factors and are unable to determine how much they […]
Date: September 9th, 2020
If compared against other criteria for evaluating the public interest, the social welfare function is most comparable to _____. a. utilitarianism b. the Pareto criteria c. the potential compensation criterion d. cost-benefit analysis ANSWER a
Date: September 9th, 2020
Positive economic analysis _____. a. evaluates policy changes and determines whether it is a good idea b. seeks to understand the outcome of a policy change c. cannot be proven incorrect d. is a statement about “what ought to be” ANSWER b
Date: September 9th, 2020
