Exam 37: The Economic Case For and Against Government: Five Topics Considered

An unintended effect of a tax credit given to first-time home buyers would be a _____________ shift in the ______________ curve for housing,which would result in a(n)_____________ in the price of housing.

The federal government and many state governments gave tax credits to first-time home buyers in 2009 and 2010. An effect of these tax credits was to

Tiffany gives $50 to Jeremy for his birthday. This is an example of a(n)

A negative externality exists and government wants to impose a tax in order to bring about an efficient outcome.To accomplish its objective,government must set the tax equal to marginal

In the case of a negative externality,the government can use a ________________ to turn an inefficient outcome into an efficient one. In the case of a positive externality,the government can use a ________________ to turn an inefficient outcome into an efficient one.

Suppose health-care reform X makes it unlawful for insurance companies to deny insurance to persons with a preexisting disease. One unintended effect of this reform is that some people

It is possible for the government to remove individuals from a prisoner's dilemma setting and make them better off.

When the government imposes a tariff on imported goods,it _____________ prices for domestic consumers,________________ consumers' surplus and _________________ the producers' surplus for domestic producers.

Economist A believes that the case for government is a strong one,but she doesn't always say,when it comes to negative externalities,that government can turn an inefficient market outcome into an efficient outcome. Which statement is economist A most likely to make?

In making the case against government,discuss the two main points about special interest groups.

Describe the intended effects of the first-time home buyer tax credits granted by Congress and many state governments in 2009 and 2010.In addition,describe in detail the unintended effect of this type of legislation.

Which of the following is usually discussed in the case against government?

Which economist said,"This focus on distribution makes the significance of distributional issues (transfer issues)in political life relatively greater and the significance of widespread common interest in political life relatively smaller."?

Special interest group X receives a 1/150^thslice of the economic pie. Its net benefits from an economic growth policy are $7,000,which are the same as its net benefits from a transfer policy. What is the change in the size of the economic pie (Real GDP)that is required to bring about this result?

A nonexcludable public good is

Government provides a nonexcludable public good that no one wants. This situation is most closely related with:

Which of the following statements is false?

Government can overcome the free rider problem by collecting taxes and using the funds to provide individuals with nonexcludable public goods that they want to buy but the market cannot provide.

Critics of government frequently assert that special interest groups favor transfer policies rather than economic growth policies.

Which of the following is false?