(Consider This) The collective action problem refers to:
A. logrolling behavior that results in inefficient policies.
B. the tendency for legislatures to enact policies that are economically harmful.
C. the lack of political power of small groups of people.
D. difficulty in organizing and motivating large groups to achieve desired outcomes.
Answer: D
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A difference between economic regulation and social regulation is that
A) the former tends to affect the prices at which products are sold and the latter does not. B) the former tends to affect the profits of firms and the latter does not. C) the former tends to be specific to an industry and the latter tends to affect firms in all industries. D) the former tends to be done at the state level and the latter at the federal level.
For a three-year period from October 1979 to October 1982; the FOMC:
A. primarily targeted reserves. B. primarily targeted M2. C. primarily targeted the real federal funds interest rate. D. gave up targeting reserves entirely.
The main sources of economies of scale are
A) increasing marginal cost and decreasing marginal product. B) specialization of resources such as labor and capital. C) caused by the difficulty of coordinating and controlling large enterprises. D) decreasing marginal cost and increasing marginal product. E) an increase in a firm's bargaining power to lower the wage rate and the cost of capital as the firm's output increases.
Which of the following statements about the comparison between GDP in China and in the United States is CORRECT?
A) Using the exchange rate to value China's GDP in dollars shows that China's GDP per person exceeds the GDP per person in the United States. B) Using purchasing power parity prices to value China's GDP in dollars shows that China's GDP per person exceeds the GDP per person in the United States. C) China's GDP per person is higher using purchasing power parity prices rather than the exchange rate when valuing China's GDP in dollars. D) None of the above answers are correct because they are all false statements.