PUP 3002 Test 2 Questions with
Complete Answers
During a recession, the Classical solution is for government spending to
a. decrease.
b. increase.
c. remain the same. - ANSWER-decrease
Which of the following best illustrates moral hazard? - ANSWER-A family does not
install a smoke alarm because they have fire insurance.
What is it called when the price of health insurance for an individual is based on the
expected health costs of the larger population within which they live? - ANSWER-
community rating
To correct for moral hazard problems, health insurers use - ANSWER-co-payments
In a(n) ____ program, recipients must demonstrate evidence of low income as well
as other factors in order to be enrolled. - ANSWER-means tested
The set of individuals covered by an insurance plan is called a - ANSWER-risk pool
Some scholars argue that health systems developed by nations are ____, with their
current systems resulting from historical circumstances. - ANSWER-path dependent
The price of health insurance varies from individual to individual based on
characteristics like age, weight, and habits. These characteristics are part of an
individual's - ANSWER-risk profile
What is it called when the consumer pays for some agreed upon proportion of the bill
if they use insurance? - ANSWER-deductible
Supporters of ____, such as the Massachusetts Plan (Romneycare) and the Patient
Protection and Affordable Care Act (Obamacare), point to the need for required
health insurance coverage. - ANSWER-health insurance mandates
____ occurs when individuals seek insurance because they are of particularly high
risk. - ANSWER-adverse selection
Traditionally, who has played the most prominent role in educational policy? -
ANSWER-State and local government
With respect to school funding, what group of individuals can best be characterized
as forced-riders? - ANSWER-those without children
, Local funding for schools depends primarily on - ANSWER-property taxes
Proponents of school vouchers and school choice believe in - ANSWER-free market
principles
College retention rates are lowest among students attending - ANSWER-for profit
schools
The national government provides need based ____ to college students. -
ANSWER-pell grants
When school revenue depends greatly on ____ districts with more expensive
housing receive greater school tax funding than districts with less expensive
housing. - ANSWER-property taxes
What types of schools have the greatest problems where test scores are persistently
lower than in other settings? - ANSWER-urban
What does bureaucratic drift refer to? - ANSWER-The tendency for bureaucrats to
enact policies that deviate from those set by the principals that form them.
A criticism of No Child Left Behind is that - ANSWER-it gives teachers incentives to
teach to the test by tying their salaries to test scores.
What does the following formula represent? 𝐸𝑈=∑𝑤(𝑝𝑖)𝑣(𝑥𝑖)𝑛𝑖=1 - ANSWER-
prospect theory
Social factors, like attaining social prestige or social disapproval, and emotional
rewards are benefits and costs just like material rewards and punishments. What are
these rewards called? - ANSWER-psychic rewards
An individual can choose to receive a guaranteed $5 or take a 50% chance of
receiving either $12 or $0. The individual who chooses the guaranteed $5 is said to
be - ANSWER-risk averse
opportunity cost is - ANSWER-the value an individual could have received but gave
up to pursue another option.
To reduce crime, the ____ advocates targeting minor offenses. - ANSWER-broken
windows theory
Goelzhauser (2012) finds that states in which judges are elected have ____ capital
punishment convictions than states without judicial elections. - ANSWER-more
Why has public support for the death penalty been diminishing? - ANSWER-growing
awareness of errors in convictions
What calculates the probability of an outcome multiplied by the utility of an outcome
summed across all possible outcomes of a choice? - ANSWER-expected utility
Complete Answers
During a recession, the Classical solution is for government spending to
a. decrease.
b. increase.
c. remain the same. - ANSWER-decrease
Which of the following best illustrates moral hazard? - ANSWER-A family does not
install a smoke alarm because they have fire insurance.
What is it called when the price of health insurance for an individual is based on the
expected health costs of the larger population within which they live? - ANSWER-
community rating
To correct for moral hazard problems, health insurers use - ANSWER-co-payments
In a(n) ____ program, recipients must demonstrate evidence of low income as well
as other factors in order to be enrolled. - ANSWER-means tested
The set of individuals covered by an insurance plan is called a - ANSWER-risk pool
Some scholars argue that health systems developed by nations are ____, with their
current systems resulting from historical circumstances. - ANSWER-path dependent
The price of health insurance varies from individual to individual based on
characteristics like age, weight, and habits. These characteristics are part of an
individual's - ANSWER-risk profile
What is it called when the consumer pays for some agreed upon proportion of the bill
if they use insurance? - ANSWER-deductible
Supporters of ____, such as the Massachusetts Plan (Romneycare) and the Patient
Protection and Affordable Care Act (Obamacare), point to the need for required
health insurance coverage. - ANSWER-health insurance mandates
____ occurs when individuals seek insurance because they are of particularly high
risk. - ANSWER-adverse selection
Traditionally, who has played the most prominent role in educational policy? -
ANSWER-State and local government
With respect to school funding, what group of individuals can best be characterized
as forced-riders? - ANSWER-those without children
, Local funding for schools depends primarily on - ANSWER-property taxes
Proponents of school vouchers and school choice believe in - ANSWER-free market
principles
College retention rates are lowest among students attending - ANSWER-for profit
schools
The national government provides need based ____ to college students. -
ANSWER-pell grants
When school revenue depends greatly on ____ districts with more expensive
housing receive greater school tax funding than districts with less expensive
housing. - ANSWER-property taxes
What types of schools have the greatest problems where test scores are persistently
lower than in other settings? - ANSWER-urban
What does bureaucratic drift refer to? - ANSWER-The tendency for bureaucrats to
enact policies that deviate from those set by the principals that form them.
A criticism of No Child Left Behind is that - ANSWER-it gives teachers incentives to
teach to the test by tying their salaries to test scores.
What does the following formula represent? 𝐸𝑈=∑𝑤(𝑝𝑖)𝑣(𝑥𝑖)𝑛𝑖=1 - ANSWER-
prospect theory
Social factors, like attaining social prestige or social disapproval, and emotional
rewards are benefits and costs just like material rewards and punishments. What are
these rewards called? - ANSWER-psychic rewards
An individual can choose to receive a guaranteed $5 or take a 50% chance of
receiving either $12 or $0. The individual who chooses the guaranteed $5 is said to
be - ANSWER-risk averse
opportunity cost is - ANSWER-the value an individual could have received but gave
up to pursue another option.
To reduce crime, the ____ advocates targeting minor offenses. - ANSWER-broken
windows theory
Goelzhauser (2012) finds that states in which judges are elected have ____ capital
punishment convictions than states without judicial elections. - ANSWER-more
Why has public support for the death penalty been diminishing? - ANSWER-growing
awareness of errors in convictions
What calculates the probability of an outcome multiplied by the utility of an outcome
summed across all possible outcomes of a choice? - ANSWER-expected utility
