Use the following graph for the next five questions.
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(10.0K) The vertical intercept of the public good demand shown above is |
| | A) | 0Y + 0X |
| | B) | exogenously given from outside the functions shown. |
| | C) | 0X + 0X |
| | D) | 0Y + 0Y + 0Z |
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13 | | The optimal provision of the public good will be |
| | A) | 0 |
| | B) | 0b |
| | C) | 0c |
| | D) | 0d |
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14 | | If both Karen and Pete are taxed 0Y for each unity of Q and a unanimous vote is required to pass a public provision bill, how much will be provided? |
| | A) | 0 |
| | B) | 0a |
| | C) | 0c |
| | D) | 0d |
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15 | | For the optimal amount to be provided by unanimous vote, Pete must be taxed ______ and Karen must be taxed _________. |
| | A) | 0x, 0y |
| | B) | 0w, 0 |
| | C) | 0y, 0y |
| | D) | 0x, 0x |
| | E) | None of the above is the right taxing scheme. |
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16 | | If the marginal cost were zero of this good and taxes were therefore not needed, how much of the good would be optimal, assuming that Karen gets no negative utility from quantities beyond the quantity she would want at zero price. |
| | A) | 0d |
| | B) | 0 |
| | C) | 0b |
| | D) | 0d + 0c |
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17 | | In any majority voting system |
| | A) | extremists have the vote go their way. |
| | B) | efficient outcomes are the rule. |
| | C) | the vote will always be close. |
| | D) | the medium voter will always be on the winning side. |
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18 | | If I prefer three dips of ice cream, would take two dips as my second choice, or finally settle for one dip is all else fails, then it is true that I have |
| | A) | double peaked preferences. |
| | B) | single peaked preferences. |
| | C) | zero peaked preferences. |
| | D) | median voter preferences. |
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19 | | If I want the sun to shine today for golfing, would be most upset if a steady drizzle happened, and would prefer heavy rains to the drizzle, it is true that I have |
| | A) | double peaked preferences. |
| | B) | single peaked preferences. |
| | C) | zero peaked preferences. |
| | D) | median voter preferences. |
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20 | | Which is a practical reason for favoring redistribution of income from the rich to the poor by the government? |
| | A) | Rich people benefit more from public goods like defense because they have more to protect. |
| | B) | Low incomes lead to discouragement, frustration and sometimes violence. |
| | C) | People will accept lower social position in society if they get more income than those lowly positions might pay. When upper class people transfer income to the lower class, social stability is more likely and the rich can retain their social standing. |
| | D) | Rich people value their last dollar much less than poor people do so a shift of one dollar from the rich to the poor brings more gain than loss and therefore enhances overall welfare in the system. |
| | E) | All of the above make sense as reasons for some form of income redistribution in a society. |
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