List and explain the four key assumptions in the theory of public choice
What will be an ideal response?
The key assumptions in the theory of public choice are (1 ) individuals are motivated by self-interest, which implies individuals will act within the political process to maximize their individual (not collective) well-being, (2 ) opportunity costs exist, which means every government action has an opportunity cost, (3 ) competition is present, which implies elected representatives will always be in competition for available government funds and (4 ) individuals in government face an incentive structure, which means if a bureaucrat provides poor representation, the organization's owners—the taxpayers—have no immediate mechanism for expressing their dissatisfaction.
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What arguments can be made against product differentiation and advertising?
What will be an ideal response?
Total profit of a competitive firm can be found by multiplying profit per unit and units sold.
Answer the following statement true (T) or false (F)
Suppose price increases from $9.00 to $11.00. Using the mid-point formula, the percentage change in price is:
A. 20% B. 25% C. 20% D. 2%
If the law requires apartment building owners to lower rent, the law of supply predicts that, other things constant, the:
A. quantity of apartment units supplied will fall. B. supply of apartment units will shift leftward. C. quantity of apartment units supplied will rise. D. supply of apartment units will shift rightward.