"Pork-barrel" legislation that contains funding for hundreds of earmarks throughout numerous states often reflects:
A. the paradox of voting.
B. logrolling.
C. the benefits-received principle.
D. adverse selection.
Answer: B
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The Tiebout model assumes that public services are financed by a proportional property tax.
A. True B. False C. Uncertain
The difference between adverse selection and moral hazard is that
A) moral hazard happens at the time parties enter into a transaction; adverse selection occurs after the transaction takes place. B) moral hazard is the motive that is behind one party entering into a transaction with another party. Adverse selection refers to the other party being harmed by the transaction. C) moral hazard refers to the likelihood that a transaction will lead one party to be better off at the expense of the other party to the transaction. Adverse selection refers to the consequences of the transaction after it has occurred. D) adverse selection happens at the time parties enter into a transaction; moral hazard occurs after the transaction takes place.
If the numbers of people officially employed and officially unemployed each increased by 10%, while the non-institutional population increased by 15%, what would be the effect?
a. an increase in the unemployment rate and an increase in the labor force participation rate b. an increase in the unemployment rate and a decrease in the labor force participation rate c. No change in the unemployment rate and an increase in the labor force participation rate d. No change in the unemployment rate and a decrease in the labor force participation rate
Everyone in the neighborhood has been complaining about the deteriorating condition of the park, but nobody has cleaned it up. Why not?
A. There is an excess demand for parks in the neighborhood. B. No single person's benefit from cleaning the park exceeds that person's cost of cleaning it. C. The social benefit of cleaning the park exceeds the social cost of cleaning it. D. There is an excess supply of parks in the neighborhood.