Determine whether each statement is true or false and explain why. A

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Determine whether each statement is true or false and explain why. Answers with no explanation will receive no points. (a) If local house prices rise after local property taxes are reduced slightly, then the level of local public goods spending was initially above the value preferred by residents. (b) In a world with adverse selection, the highest-risk types will buy actuarially fair insurance if it is offered. (c) Under the pure Tiebout hypothesis, the ratio of local taxes to individual income will be the same for residents with different levels of income living in the same community. (d) The US Social Security's delayed retirement credit program (DRC) should unambiguously delay the claiming of benefits among workers at or above the full benefit age. (e) One solution to the crowd-out problem of free public education (i.e., public education leading some families to have less education overall than they would in a private market) is the use of educational vouchers. Thus, vouchers unambiguously improve the equity and efficiency with which education markets function in the United States.
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