Filters
Question type
Study Flashcards

The Condorcet voting paradox shows that outcomes based on dictatorial preferences do not always obey the property of transitivity.

A) True
B) False

Correct Answer

verifed

verified

Because people with hidden health problems are more likely to buy health insurance than are other people,


A) the price of health insurance reflects the costs of a sicker-than-average person.
B) the price of health insurance is too low, relative to the socially-optimal price.
C) people in average health may be encouraged to buy too much health insurance, relative to the socially-optimal quantity.
D) the Condorcet Paradox suggests that people who are sicker than average will ultimately buy more health insurance.

E) None of the above
F) B) and C)

Correct Answer

verifed

verified

Explain how the presence of asymmetric information in car insurance markets may lead people who are good drivers or even average drivers to choose not to buy car insurance unless the law requires it.

Correct Answer

verifed

verified

Drivers (buyers and potential buyers of ...

View Answer

A "satisficer" is a person who


A) always chooses the best course of action.
B) often chooses the worst course of action.
C) makes decisions that are merely good enough.
D) studies both economics and psychology.

E) B) and C)
F) A) and B)

Correct Answer

verifed

verified

Table 22-4 Five voters must choose from among four options: A, B, C, or D. Each voter's preferences are summarized in the table below. Options higher in the table are more preferred by the voter. Table 22-4 Five voters must choose from among four options: A, B, C, or D. Each voter's preferences are summarized in the table below. Options higher in the table are more preferred by the voter. -Refer to Table 22-4.If the vote were conducted according to a Borda count system where each person's first choice receives 4 points,second choice 3 points,third choice 2 points and fourth choice 1 point,the result would be A) that A would win. B) that B would win. C) that C would win. D) a tie between A and D. -Refer to Table 22-4.If the vote were conducted according to a Borda count system where each person's first choice receives 4 points,second choice 3 points,third choice 2 points and fourth choice 1 point,the result would be


A) that A would win.
B) that B would win.
C) that C would win.
D) a tie between A and D.

E) All of the above
F) A) and D)

Correct Answer

verifed

verified

Table 22-10 Three family members -- Seamus, Maeve, and Siobhan -- are deciding what type of movie to attend. The three choices are an action adventure, comedy, or horror. The first, second, and third choices for each person are as indicated in the table below. Table 22-10 Three family members -- Seamus, Maeve, and Siobhan -- are deciding what type of movie to attend. The three choices are an action adventure, comedy, or horror. The first, second, and third choices for each person are as indicated in the table below. -Refer to Table 22-10.If the voting method is a Borda count,which alternative will be chosen? A) Comedy B) Action C) Horror D) None of the above is correct; a Borda count fails to produce a winner in this instance. -Refer to Table 22-10.If the voting method is a Borda count,which alternative will be chosen?


A) Comedy
B) Action
C) Horror
D) None of the above is correct; a Borda count fails to produce a winner in this instance.

E) B) and C)
F) C) and D)

Correct Answer

verifed

verified

Table 22-5 The 500 voters of Appleton are deciding by majority rule how much to spend on a new library. Table 22-5 The 500 voters of Appleton are deciding by majority rule how much to spend on a new library. -Refer to Table 22-5.The median voter prefers to spend A) $2 million. B) $2.57 million. C) $3 million. D) $4 million. -Refer to Table 22-5.The median voter prefers to spend


A) $2 million.
B) $2.57 million.
C) $3 million.
D) $4 million.

E) B) and C)
F) A) and D)

Correct Answer

verifed

verified

Studies of human decision making have found that people are reluctant to change their minds.

A) True
B) False

Correct Answer

verifed

verified

According to the median voter theorem,majority rule will produce an outcome that is inconsistent with transitive preferences.

A) True
B) False

Correct Answer

verifed

verified

Arrow's impossibility theorem shows that no voting system can satisfy which of the following properties?


A) unanimity and transitivity only
B) transitivity and independence of irrelevant alternatives only
C) no dictators and transitivity only
D) unanimity, transitivity, independence of irrelevant alternatives, and no dictators

E) A) and B)
F) All of the above

Correct Answer

verifed

verified

Which of the following is an example of asymmetric information?


A) When someone is applying for a job, the employer checks references to determine the previous work habits of the applicant.
B) When an employee purchases group life insurance without taking a physical exam, she knows more about her health than does the insurance company.
C) When someone is considering buying a used car from a dealership, the potential buyer requests documentation of the repair history of the car.
D) All of the above are correct.

E) A) and B)
F) C) and D)

Correct Answer

verifed

verified

Bob is planning to sell his home.In preparation for the sale,he paints all of the ceilings in his house to cover up water stains from his leaking roof so that potential buyers will be unaware of this problem.This is an example of


A) moral hazard.
B) screening.
C) adverse selection.
D) the principal-agent problem.

E) A) and D)
F) A) and C)

Correct Answer

verifed

verified

The median voter


A) is the voter exactly in the middle of the distribution.
B) is the voter whose preferred outcome beats any other proposal in a two-way race.
C) always has more than half the votes on his side in a two-way race.
D) All of the above are correct.

E) A) and C)
F) A) and B)

Correct Answer

verifed

verified

Evidence from studies of workers' choices on whether to participate in 401(k) plans suggests that the workers' behavior appears to exhibit


A) indifference.
B) ignorance.
C) inertia.
D) indecision.

E) None of the above
F) C) and D)

Correct Answer

verifed

verified

Recent developments in political economy


A) render much of the traditional field of political science obsolete.
B) render much of the traditional field of economics obsolete.
C) illustrate the resolute nature of democracy.
D) point to the fact that government is a less-than-perfect institution.

E) B) and C)
F) All of the above

Correct Answer

verifed

verified

Scenario 22-4 Suppose that residents of a town are asked to vote on the best way to improve the safety of an intersection. The three choices are: a stoplight, a 4-way stop, and a 2-way stop. The voters are divided into three groups based on their preferences. Voter Type Scenario 22-4 Suppose that residents of a town are asked to vote on the best way to improve the safety of an intersection. The three choices are: a stoplight, a 4-way stop, and a 2-way stop. The voters are divided into three groups based on their preferences. Voter Type -Refer to Scenario 22-4.If the first vote pits a 2-way stop against a stoplight and the second vote pits a 4-way stop against the winner of the first vote,then the outcome is as follows: A) 2-way stop wins the first vote and 2-way stop wins the second vote, so the town installs a 2-way stop. B) 2-way stop wins the first vote and 4-way stop wins the second vote, so the town installs a 4-way stop. C) Stoplight wins the first vote and stoplight wins the second vote, so the town installs a stoplight. D) Stoplight wins the first vote and 4-way stop wins the second vote, so the town installs a 4-way stop. -Refer to Scenario 22-4.If the first vote pits a 2-way stop against a stoplight and the second vote pits a 4-way stop against the winner of the first vote,then the outcome is as follows:


A) 2-way stop wins the first vote and 2-way stop wins the second vote, so the town installs a 2-way stop.
B) 2-way stop wins the first vote and 4-way stop wins the second vote, so the town installs a 4-way stop.
C) Stoplight wins the first vote and stoplight wins the second vote, so the town installs a stoplight.
D) Stoplight wins the first vote and 4-way stop wins the second vote, so the town installs a 4-way stop.

E) A) and D)
F) All of the above

Correct Answer

verifed

verified

Based on the studies of human decision making,which of the following statements is correct?


A) Most people are not bothered by perceived unfairness as long as they receive some compensation, even if the amount is very small.
B) Most people are very willing to change their minds.
C) Many people's preferences are inconsistent over time.
D) All of the above are correct.

E) None of the above
F) A) and C)

Correct Answer

verifed

verified

Arrow's impossibility theorem is "disturbing" in the sense that it proves that


A) no voting system is perfect.
B) only a dictator can produce a desirable social outcome.
C) the preferences of the wealthy should be given more weight than the preferences of the poor.
D) the centuries-old Condorcet paradox was not a paradox after all.

E) C) and D)
F) B) and D)

Correct Answer

verifed

verified

When economists assume that people are rational,they assume that


A) consumers maximize profits.
B) firms maximize revenues.
C) consumers maximize utility.
D) firms maximize output.

E) A) and B)
F) A) and C)

Correct Answer

verifed

verified

The results of the ultimatum game illustrate the fact that


A) people's behavior is often driven by an innate sense of fairness.
B) homo economicus is a good description of people's behavior.
C) self-interest brings out the most efficient economic outcome.
D) Both b and c are correct.

E) C) and D)
F) A) and D)

Correct Answer

verifed

verified

Showing 101 - 120 of 353

Related Exams

Exam 1

Ten Principles of Economics.

349 Questions

Exam 2

Thinking Like an Economist.

535 Questions

Exam 3

Interdependence and the Gains from Trade.

443 Questions

Exam 4

The Market Forces of Supply and Demand.

571 Questions

Exam 5

Elasticity and Its Application

510 Questions

Exam 6

Supply, Demand, And Government Policies.

557 Questions

Exam 7

Consumers, Producers, and the Efficiency of Markets.

460 Questions

Exam 8

Application: The Costs of Taxation.

424 Questions

Exam 9

Application: International Trade.

410 Questions

Exam 10

Externalities.

441 Questions

Exam 11

Public Goods and Common Resources.

349 Questions

Exam 12

The Design of the Tax System.

478 Questions

Exam 13

The Costs of Production.

533 Questions

Exam 14

Firms in Competitive Markets.

478 Questions

Exam 15

Monopoly.

526 Questions

Exam 16

Monopolistic Competition.

497 Questions

Exam 17

Oligopoly.

410 Questions

Exam 18

The Market For the Factors of Production.

463 Questions

Exam 19

Earnings and Discrimination.

398 Questions

Exam 20

Income Inequality and Poverty.

374 Questions

Exam 21

The Theory of Consumer Choice.

462 Questions

Show Answer