This midterm exam consist of 35 multiple choice questions and covers the material in Chapters 1 through 7. There are five questions from each Chapter.\tQuestion 1:\tIf the economy is operating at full employment and using resources efficiently, then an increase in spending for homeland security this year will:\tQuestion 2\tFollowing the circular flow of a mixed economy, firms receive a flow of dollars from and send goods and services to:\tQuestion 3\tIn 2008, which country listed below has the highest percentage of government spending relative to GDP?\tQuestion 4\tFederal government expenditures in the United States account for about:\tQuestion 5\tA mixed economy is one in which:\tQuestion 6\tThe extra benefit on one more unit of a good or service is its:\tQuestion 7\tNormative economics is:\tQuestion 8\tDiamonds are sold by a monopoly firm that maximizes profits. Then it follows that:\tQuestion 9\tPositive economics:\tQuestion 10\tIf the efficient output of a good is produced each week, then the\tQuestion 11\tThe current competitive market price of fish is $3 per pound. A chemical producer emits effluent into a lake used by a commercial fishing firm. Each ton of chemical output causes a 20-pound reduction in the annual catch of the fishing firm. Assuming that transactions costs are zero and the chemical firm has the legal right to dump effluent into the lake,\tQuestion 12\tAssuming a product can be manufactured competitively without any externalities at an efficient quantity of 500 units and an efficient price of $150.00 per unit, what efficient quantity-price net subsidy combination would be consistent with a corrective subsidy for a positive externality?\tQuestion 13\tIf a positive externality prevails in the market for smoke detectors, then when the market is in equilibrium,\tQuestion 14\tThe competitive market equilibrium price of sanitation services in a small town with no government-supplied sanitation services is $2 per trash pickup. There is a $1 marginal external benefit associated with each trash pickup. The elasticity of supply of trash pickups is infinite in the long run, implying a horizontal supply curve. To achieve the efficient output of sanitation services,\tQuestion 15\tAccording to the Coase theorem, externalities can be internalized when transactions costs are zero through:\tQuestion 16\tEducation is:\tQuestion 17\tCable TV programming is an example of a:\tQuestion 18\tThe marginal cost of making a given quantity of a congestible public good available to more con\u00acsumers is:\tQuestion 19\tPublic transportation is:\tQuestion 20\tThe principle of nonexclusion for pure public goods means that the benefits of the good:\tQuestion 21\tThe plurality rule is:\tQuestion 22\tA public choice is:\tQuestion 23\tA community currently hires 10 security guards per week to patrol their neighborhood. Each secu\u00acrity guard costs $300 per week. Assuming that the tax-sharing arrangement agreed to results in each of 300 voters paying the same tax share, each voter pays a weekly tax bill of:\tQuestion 24\tWhich of the following collective choice rules is likely to incur the highest political transactions costs?\tQuestion 25\tIf the marginal social benefit of one more unit of a good is 10 and the marginal social cost of one more unit of a good is 11, then:\tQuestion 26\tProgram budgeting is a way to:\tQuestion 27\tA government agency has a new hydroelectric project that will take 15 years to build before it pro\u00acvides any benefits. The net present value of the project will be highest under which of the following discount rates?\tQuestion 28\tThe process of taking a previous period’s budget and making minor changes to produce the current year’s budget is called:\tQuestion 29\tIf the social rate of discount falls, then the efficient amount of government capital spending will:\tQuestion 30\tThe mission of a government agency is:\tQuestion 31\tA welfare recipient receives a cash transfer of $100 per week. This grant is not reduced if the recipient earns less than $20 per week. However, after the recipient earns more than $20 per week, the grant is reduced by 66 cents for each dollar of earnings. The cash transfer will be reduced to zero if the recipient earns:\tQuestion 32\tGovernment transfers to the poor in the United States:\tQuestion 33\tTemporary Assistance to Needy Families (TANF) replaced:\tQuestion 34\tIn the United Stated, which of the following years had the highest poverty rate?\tQuestion 35\tThe Supplemental Nutrition Assistance (formerly called food stamps):<\/p>\n","protected":false},"excerpt":{"rendered":"
This midterm exam consist of 35 multiple choice questions and covers the material in Chapters 1 through 7. There are five questions from each Chapter. Question 1: If the economy is operating at full employment and using resources efficiently, then Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-210763","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/210763","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=210763"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/210763\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=210763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=210763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=210763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}