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15 Cards in this Set

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  • Back
1) Problems that result when individually rational actions produce outcomes at the group level that do not appear to be very rational are known as:
b) People have preferences that they attempt to maximize
2) Indifference curves are used to
a) depict the preferences of citizens/consumers
3) Suppose the government places regulations on the amount of pollution a factory may emit. These regulations are considered
b) Constraints
4) The Prisoner’s Dilemma describes what social problem?
a) Actions that are rational at the individual level do not always lead to optimal
5) Suppose a proposal to build a new interstate connecting St. Marks to Atlanta through Tallahassee is being considered. The highway would cut through a wetland in Wakulla County, causing a rare species of bird to become extinct. However, it would decrease drive time from Tallahassee to Atlanta by 45 minutes and give 500 people new construction jobs. What is an example of a positive externality from this proposal if it is passed?
a) 500 new jobs
6) The process of using money values to measure the costs and benefits in cost-benefit analyses is known as:
b) Hedging
7) I am offered $500 today or $5,000 in 5 years. I decide to take the $5,000 in years. I have engaged in the process of
c) Discounting
8) What is a key difference between the Pareto principle and the Kaldor-Hicks compensation principle?
b) The Kaldor-Hicks principle incorporates intensity of preferences
9) The government decides to tax the wealthiest 5% of its citizens and to give that money directly to the poorest 5% of the population. The policy described is:
c) a zero-sum policy
10) What is 1 possible negative externality stemming from the completion of the I-69 segment that would connect Evansville to Indianapolis?
a) Destruction of some farmland/wilderness
11) Congressman Brad Ellsworth represents Indiana’s 8th Congressional District, which includes the cities of Evansville, Vincennes, and Terre Haute. What is one problem that he may face with the I-69 proposal?
c) The proposed I-69 would likely cut off traffic that currently goes through Vincennes via US41, pitting cities in his district against each other.
12) There have been a number of cost-benefit analyses conducted concerning the I-69 project, but none come to the same conclusions. What is 1 likely reason for this?
b) Cost-benefit analyses are not always immune to political pressures/cronyism
13) What is the major difference between experimental and quasi-experimental designs?
a) Experimental design utilizes random assignment
14) A city council has decided to conduct an experiment where some neighborhoods will receive new streetlights and other neighborhoods will receive nothing in order to determine their effect on crime. The council members compile a list of the 100 neighborhoods in their city. They use a random number generator, allocate these numbers randomly to neighborhoods. Any neighborhood that has a number between 1 & 20 will receive streetlights. Neighborhoods 21-100 receive nothing. The result is that 10 high-income neighborhoods, 5 moderate income neighborhoods, and 5 low-income neighborhoods receive the streetlights. What element of good experimental design has been violated?
a) No violation
15) In the above example, which neighborhoods represent the control group?
a) Neighborhoods 21-100