Question

1) One of the disadvantages of our current welfare system is that

A) it works in the opposite direction of Rawl's view of justice.

b) it provides incentives for the poor not to work.

c) it gives the poor too much money.

D) it is biased in favor of rich people.

2) Say 6 homogenous consumers have individual willingness to pay P = 20 - 4Q. If the marginal cost of providing Q is 6Q, the optimal amount of Q is

A)6. B)4. C) 2. B) 0

3) If voters are rational, they are more likely to vote

A) when they are employed.

B) in small local elections.

C) if the issues are complex

C) in large national elections.

4) A new fad dramatically increases the demand for donut-holes, the leftovers produced from donut production. According to economic theory, one would expect

A) that one cannot tell

B) the price of donuts to stay the same.

C) the price of donuts to rise.

D) the price of donuts to fall.

Please answer all of the questions

Answer 1

1) Answer: It provides incentives for the poor not to work

Due to this incentives it can make people dependent as they will receive money while unemployed they will be less motivated to work. So this is one of the drawback of this welfare system

3) Answer: When they are employed

Rational choice is an theory which states that people take decision when there is highest amount of personal utility

4) Answer: The price of donut demand same

Donut hole is a byproduct of donut . They have different demands and prices depending on market conditions. Any change in donut supply may effect the donut holes demand and supply. But any change in donut hole demand and supply does not effect donut as it is a byproduct.