Econ 481 Government Expenditures
Fall 2011 Midterm- Sketch of Answers
MULTIPLE CHOICE (1 point each - 8 points total CIRCLE THE CORRECT
1. Roughly what percent of total GDP is spent by all levels of government on
a 2 perce
Midterm - Public Economics
Sketch of Answers
(1 point each - 10 points total, CIRCLE ALL OF THE CORRECT ANSWER):
Which of the following is a question in normative analysis?
a What is the eect of income taxes on
MULTIPLE CHOICE (1 point each - 7 points total CIRCLE THE CORRECT
1. According to budget projections, future payroll tax receipts will be enough
to pay for roughly what fraction of promised Social Security benets when you
are likely to become eli
Public Goods Theory - Prof. Albouy
Midterm Spring 2014
Sketch of answers
MULTIPLE CHOICE (1 point each - 3 points total CIRCLE THE CORRECT
1. "If the Illinois legislature extends unemployment insurance duration from 26
weeks to 52 weeks the unemp
Public Goods Game
Consider the following version of the Public Goods game (and
the associated free-rider problem.
Two players decide simultaneously whether or not to
contribute to a public good.
Each player derives a benefit of 1 from the good as long as
We are beginning our look at Principal-Agent models.
These are asymmetric information models where one party will
propose a take-it-or-leave-it offer to the other.
Models in this framework vary based on what source of