Public choice theory applies ____ principles to politics
a. altruistic
b. ceteris paribus
c. economic
d. the fallacy of composition
c
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Since the policy will be implemented over time, economists assume that per resident benefits will accrue in increments of $500 (in real terms) at the end of each of the next three years. Find the present value of benefits (PVB) in nominal terms for each resident, assuming an annual inflation rate of 4% and a nominal annual discount rate of 9%.
The Los Angeles area has long been plagued by urban smog. Suppose that one of several ozone-reducing policy options is being evaluated by economists using benefit-cost analysis.
When discussing issues of pollution, it is clear that
A) since polluters are harming other people they must be made to stop polluting. B) we can easily delineate who is the victim and who is the villain. C) the most efficient amount of pollution is no pollution at all. D) None of the above are true.
If the marginal propensity to consume (MPC) is 0.75, a $50 decrease in government spending, other things being equal, would cause equilibrium real GDP to:
a. increase by $50.
b. decrease by $50.
c. increase by $200.
d. decrease by $200.
Which of the following is considered a nonrenewable natural resource?
A. Solar power. B. Coal. C. Oceans. D. Aquifers.