QUESTION 27If the federal government gives a grant to a state to spend only on education and total state education spending does not increase at all, whichof these is TRUE empirically? Assume that education is a normal good.O a. There is a flypaper effect.Ob. There is a substantial substitution effect.Oc. There is NO income effect.Od. There is both an income effect and a substitution effect.QUESTION 28The earnings test in Social Security is essentially a:a. tax on earnings.Ob. subsidy on earnings.c. forced savings mechanism.Od. redistribution mechanism.QUESTION 29Pam and Kunal are the only members of a community that is trying to determine how much of a public good should be produced. Suppose thatPam is willing to pay $10 for the fourth unit of the public good, while Kunal is willing to pay $3 for it. What is the community's marginalwillingness to pay for the fourth unit of the public good?a. $3b. $4c. $10d. $13QUESTION 30In a Lindahl equilibrium:O a. no one could be made better off by reducing their tax burden, all things equal.O b. most but not all individuals are happy to pay their taxes to receive the benefits.O c. the government must subsidize the project by using nontax financing schemes.O d. everyone is willing to pay the taxes to receive the benefits.QUESTION 31What happens to the efficiency gap if districts are redrawn so that Party A loses by a slim margin in all districts?O a. It falls to zero.Ob. It decreases.O c. It increases.O d. It remains unchanged.

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QUESTION 27 If the federal government gives a grant to a state to spend only on education and total state education spending does not increase at all, which of these is TRUE empirically? Assume that education is a normal good. O a. There is a flypaper effect. Ob. There is a substantial substitution effect. O c. There is NO income effect. Od. There is both an income effect and a substitution effect.

QUESTION 27 If the federal government gives a grant to a state to spend only on education and total state education spending does not increase at all, which of these is TRUE empirically? Assume that education is a normal good. O a. There is a flypaper effect. Ob. There is a substantial substitution effect. O c. There is NO income effect. Od. There is both an income effect and a substitution effect.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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