Suppose voter preferences over a public good funded through a head tax are single peaked. If everyone has the same tastes and the public good is a normal good, then ideal points for higher income individuals will lie to the right of ideal points of lower income individuals.
Answer the following statement true (T) or false (F)
True
Rationale: In this case, the slope of the budget (in a graph like Graph 28.1) is unchanged as income goes up -- implying that all relevant budgets are parallel. As income increases, individuals then "demand" more public good as long as the public good is a normal good.
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Short-run equilibrium output is the level of output at which real GDP
A. equals real GDP per capita. B. equals potential output. C. maximizes firm profits. D. equals aggregate expenditure.
Which of the following is an assumption of the monopoly model?
a. There exists a large number of buyers and sellers. b. There are no close substitutes of the good. c. The firm faces a horizontal demand curve. d. There is free entry and exit of firms. e. The firm is a price taker.
If a knowledge worker knows more than has manager it makes
A) sense to have a hierarchy organization. B) sense for the manager to closely monitor the employee. C) sense to promote the employee. D) no sense for the manager to monitor the employee.
In the American Tobacco and Standard Oil cases, the Supreme Court
A. prohibited monopoly per se. B. prohibited certain illegal tactics. C. applied the rule of reason. D. had the government take over the oil and tobacco industries.