Which of the following scenarios would support the theory of public choice?
A. A college president eliminates wasteful departments and programs even though this will shorten her tenure and her political future.
B. The president of Colombia goes after drug traffickers despite death threats and the offer of bribes that could make him a rich man.
C. The governor of the state vetoes a highway bill even though the highway would enhance the value of property he or she owns.
D. The local police chief fails to give the mayor a speeding ticket because the mayor might fire him.
Answer: D
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If there are 200 physicians per 100,000 population in the United States generally, but over 500 per 100,000 population in San Francisco,
A) physicians are not scarce in San Francisco. B) physicians particularly enjoy living and working in San Francisco, for financial and other reasons. C) residents of San Francisco necessarily need more medical services than the average American. D) there is a shortage of patients in San Francisco. E) there is a surplus of physicians in San Francisco.
Lawyer Ayres and economist Levitt considered the net benefits of installing a LoJack from the society's standpoint positive, because the annual installation and service charges on this equipment was:
a. more than the average loss per stolen car. b. higher than the auto theft insurance paid by car owners c. lower than the auto theft insurance paid by car owners. d. less than the average loss per year due to deterred theft.