Escolar Documentos
Profissional Documentos
Cultura Documentos
award:
2.
award:
3.
award:
4.
award:
5.
award:
6.
award:
7.
award:
The following data are for a series of increasingly extensive flood control projects:
8.
Refer to the above data. On the basis of cost-benefit analysis government should undertake: Plan D. Plan C. Plan B. Plan A.
9.
award:
10.
award:
11.
award:
12.
(Last Word) A cap-and-trade program: assigns a property right to the atmosphere. mandates that every firm individually cuts its emissions to below a certain level. assigns a property right to polluting the atmosphere. is easy to establish and enforce.
13.
An emission fee levied against polluters will tend to: Internalize the internal cost of pollution Externalize the internal cost of pollution Internalize the external cost of pollution Externalize the external cost of pollution
14.
award:
15.
By requiring car producers to install emission control devices on cars, the government forces these producers to internalize some of the external costs of auto pollution. This will lead to the equilibrium price of cars: Decreasing and the quantity increasing Decreasing and the quantity decreasing Increasing and the quantity increasing Increasing and the quantity decreasing
16.
Where there is asymmetric information between buyers and sellers. product shortages will occur at the equilibrium price. product surpluses will occur at the equilibrium price. markets can produce inefficient outcomes. markets will fail due to the "free-rider problem."
17.
As it applies to insurance, the moral hazard problem is the tendency for: those most likely to collect on insurance to buy it. those who buy insurance to take less precaution in avoiding the insured risk. sellers to price discriminate. sellers to restrict output and charge high prices.
18.
award:
19.
Because the Federal government typically provides disaster relief to farmers, many farmers do not buy crop insurance even through it is federally subsidized. This illustrates: the adverse selection problem. the moral hazard problem. the special interest effect. logrolling.
20.
Professional buyers of antiques often have more information about the value of antique objects than do the sellers. This illustrates: the principal-agent problem. the moral hazard problem. the free-rider problem. asymmetric information.
21.
Upon learning that his auto transmission is about to fail, Ray Roma sells his car to an unsuspecting buyer. This circumstance illustrates: asymmetric information. the free-rider problem. the moral hazard problem. the principal-agent problem.
22.
award:
22.
award:
24.
award:
Answer the next question on the basis of this table showing the marginal benefit that a particular public project will provide to each of the three members of a community. No vote trading is allowed.
25.
award:
26.
award:
27.
award:
Multiple Choice
Difficulty: 2 Medium
28.
Refer to the above table. The inconsistency illustrated by the table is that, while a majority of voters prefer the: highway to the lighthouse and the submarine to the highway, they also prefer the lighthouse to the submarine. lighthouse to the highway and the lighthouse to the submarine, they also prefer the submarine to the highway. highway to the lighthouse and the submarine to the lighthouse, they also prefer the submarine to the highway. lighthouse to the submarine and the highway to the submarine, they also prefer the highway to the lighthouse.
29.
The median-voter model implies that a political office seeker will: adopt more extreme views when seeking his or her party's nomination than when running against the other party's opponent. adopt less extreme views when seeking his or her party's nomination than when running against the other party's opponent. favor extensive government spending because demand curves for public goods are added vertically rather than horizontally. favor the private resolution of externality problems rather than governmental intervention.
30.
award:
31.
According to public choice theorists, the private sector is more efficient than the public sector mainly because: the private sector has a clear test of performance: profit and loss. wages, salaries, and fringe benefits are higher in the private sector. worker turnover is higher in the public sector. of extensive negative externalities in the public sector.
32.
Suppose American winemakers convince the Federal government to issue a directive to serve only domestically produced wine at government functions. This would be an example of: moral hazard. the principal-agent problem. logrolling. rent-seeking behavior.
33.
Public choice theorists hold that politicians will: favor programs entailing immediate and clear-cut costs and vaguely defined or deferred benefits. follow policies leading to an optimal allocation of resources between public and private sectors. favor programs entailing immediate and clear-cut benefits and vaguely defined or deferred costs. objectively weigh the costs and benefits of various government programs and vote accordingly.
34.
award:
35.
award: