The voting paradox suggests that the "voting market," as represented by elections
A) leads to a superior outcome in representing consumer preferences compared to the private market for goods and services.
B) is no different from the private market for goods and services in terms of representing consumer preferences.
C) may not lead to an efficient outcome but certainly leads to a more equitable outcome in terms of distributing goods and services.
D) may often lead to an inefficient outcome in representing consumer preferences compared to the private market for goods and services.
D
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Assume that full-employment real GDP is Y = $1,200 billion, the current equilibrium real GDP is Y = $800 billion, and the MPC is 0.50 . What level of aggregate expenditures will close the recessionary gap?
a. $50 billion. b. $80 billion. c. $140 billion. d. $200 billion. e. $400 billion.
If U.S. securities pay 7 percent interest, and if Great Britain’s securities pay 5 percent interest, then
A. pounds depreciate relative to dollars. B. pounds appreciate relative to dollars. C. Great Britain’s imports will rise. D. Great Britain’s exports will fall.
Hot dog vendors on the beach fail to cooperate with one another on the quantity of hot dogs they should sell to earn monopoly profits. A consequence of their failure is that, relative to the outcome the vendors would like, (i) the quantity of hot dogs supplied is closer to the socially optimal level. (ii) the price of hot dogs is closer to marginal cost. (iii) the hot dog market at the beach is
less competitive. a. (i) and (ii) b. (ii) and (iii) c. (i) and (iii) d. (iii) only
An increase in interest rates by the Fed based on a given and unchanged policy reaction function represents a ________ the aggregate demand curve, and higher interest rates resulting from an upward shift in the Fed's policy reaction function represents a ________ the aggregate demand curve.
A. movement up; shift left of B. shift left of; shift right of C. movement up; shift right D. shift left of; movement up