Question
26. An understanding of the principles of public sector economics can help us create _____. Ans: a. innovative public policies b. a more effective government
26. |
An understanding of the principles of public sector economics can help us create _____. Ans: |
| a. innovative public policies |
| b. a more effective government |
| c. a protective government that better shields its citizens from risk |
| d. new spending programs |
27. |
The governments economic programs and policies in the United States _____. |
| a. are determined mostly by professional economists |
| b. are largely determined by looking at what other countries are doing |
| c. are a product of a democratic political system |
| d. are largely determined by corporations |
28. | Federal government expenditures in the United States comprise about _____ of total government expenditures. |
| a. 90 percent |
| b. 75 percent |
| c. 60 percent |
| d. 45 percent |
29. | When compared to national defense expenditures, human resources expenditures _____. |
| a. declined substantially during the 1980s |
| b. have remain stable since the 1950s |
| c. are a smaller percentage of GDP |
| d. have increased substantially since the mid-1960s |
30. | The difference between government receipts and government expenditures is called a _____. |
| a. loss |
| b. shortfall |
| c. deficit |
| d. debt |
31. | As a percentage of total federal revenues the corporate income tax has _____. |
| a. increased since 1960 |
| b. declined since 1960 |
| c. fallen during the 1980s, but risen since 1992 |
| d. remained fairly constant since 1960 |
32. | As a percentage of total federal revenues, the individual income tax has _____. |
| a. increased substantially since 1960 |
| b. declined substantially since 1960 |
| c. increased slightly since 1960 |
| d. declined slightly since 1960 |
33. | Social insurance revenues _____ come from _____. |
| a. primarily; Social Security payroll taxes |
| b. primarily, Medicare taxes |
| c. primarily; Social Security payroll taxes and Medicare taxes |
| d. do not; Social Security payroll taxes |
34. | The bulk of federal budget receipts come from ______. |
| a. individual income taxes |
| b. social insurance revenues |
| c. corporation income taxes |
| d. excise taxes |
35. | When compared with other governments around the world, government spending in the United States as a percentage of GDP_____. |
| a. is generally lower than similar countries |
| b. is generally higher than similar countries |
| c. is about average relative to similar countries |
| d. is impossible to compute because of differences between countries |
36. | The individuals budget constraint is _____. |
| a. the amount of money she has in the bank |
| b. determined by dividing the individuals income by the price of the goods she wants to buy |
| c. the maximum amount one good she can consume given her consumption of other goods |
| d. a line depicting all the possible budgets an individual could have at various occupations |
37. | Which of these actions will occur to the budget constraint when an individuals income increases? |
| a. shifts outward |
| b. shifts backward |
| c. rotates clockwise |
| d. cannot be determined from the information given |
38. | The utility maximizing consumption bundle for an individual can be found by locating _____. |
| a. the individuals bliss point |
| b. any point on an indifference curve touching the budget constraint |
| c. the highest point on an individuals indifference curve |
| d. the point tangent to an individuals budget constraint |
39. | The market system is based upon _____. |
| a. money |
| b. voluntary exchange |
| c. capitalism |
| d. profits |
40. | _____ a cornerstone of the market economy. |
| a. Mutually beneficial exchange is |
| b. A strong central bank |
| c. Monopoly rents are |
| d. Government regulation is |
41. | As long as the value of additional units of output exceed the opportunity cost of that output, _____. |
| a. it will not be produced |
| b. it likely will not be produced |
| c. it will be produced |
| d. it is likely to be produced |
42. | The subject matter of public economics falls into the two general categories of _____ and _____. |
| a. public interest; private interest |
| b. coercion action; individual liberty |
| c. revenue generation; government spending |
| d. civilian activities; military duties |
43 | The market system is able to allocate resources efficiently because individuals have the right to the output they produce and _____. |
| a. freedom of the press |
| b. freedom of speech |
| c. freedom of movement |
| d. freedom of exchange |
44. | Government institutions that protect the rights of individuals are ______. |
| a. the executive, legislative, and judicial branches of government |
| b. federal, state, and local governments |
| c. federal agencies such as OSHA, FEC, and the FCC |
| d. police, military branches, and the court system |
45. | Employing utilitarianism as a measure of the public interest _____. |
| a. is inconsistent with the concept of a social welfare function |
| b. attempts to minimize the problems associated with market failure |
| c. attempts to maximize total utility in a society |
| d. avoids comparing individuals utilities |
46. | The Pareto optimality concept is _____. |
| a. equivalent to the concept of economic efficiency |
| b. equivalent to Pareto superiority |
| c. equivalent to utilitarianism |
| d. equivalent to cost-benefit analysis |
47. | A property right _____. |
| a. entails responsibility |
| b. means you can burn trash in your yard whenever you want |
| c. is absolute |
| d. is completely different than the right to free speech |
48. | The Coase Theorem states that _____. |
| a. in the absence of transactions costs, the allocation of resource will be independent of property right assignment |
| b. in the absence of transactions costs, the allocation of resources will be dependent on property right assignment |
| c. with transactions costs, the allocation of resources will be independent of property right assignment |
| d. with transactions costs, the allocation of resources will be dependent of property right assignment |
49. | The Coase Theorem implies that _____. |
| a. absent transactions costs, resources will be efficiently allocated |
| b. absent transactions costs, resources will be inefficiently allocated |
| c. with significant transactions costs, resources will be efficiently allocated |
| d. with significant transactions costs, resources will be inefficiently allocated |
50. | Entitlements _____. |
| a. give some individuals a command over the economic resources of others |
| b. do not require others to take action |
| c. are analogous to property rights |
| d. have not expanded during the twentieth century |
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