The cost disease of the service sector is evidenced by
A. a failure of the market mechanism.
B. increased quality of public and private services.
C. dramatic increases in municipal budget burdens for education, health care, and police and fire protection.
D. the increased productivity in the services area.
Answer: C
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One way of overcoming the problem of the commons is to make it private property
Indicate whether the statement is true or false
According to the misperceptions theory, when the aggregate price level is higher than expected,
A) the aggregate quantity of output supplied rises above the full-employment level. B) the aggregate quantity of output supplied falls below the full-employment level. C) the aggregate quantity of output demanded falls below the full-employment level. D) the aggregate quantity of output demanded rises above the full-employment level.
Protectionist legislation is often passed because:
A. employers in the affected industry lobby more effectively than the workers in that industry. B. both employers and workers in the affected industry lobby for protectionist policies. C. trade restrictions often benefit domestic consumers in the long run, though they must pay more in the short run. D. it helps to keep domestic prices at a relatively lower level.
Simple majority voting will generate the same result whether taxes are equally divided or unequally divided
Indicate whether the statement is true or false