Pharmaceutical development provides a good example of rent-seeking behavior, the pursuit of which results in _______.
a. lower economic activity by diverting resource to less-productive uses
b. lower prices throughout the economy
c. increased economic activity by promoting efficiency
d. a more equitable distribution of income and wealth
e. greater income and wealth in the private se
a. lower economic activity by diverting resource to less-productive uses
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Hotelling's model has been used to describe differentiation in the political "market." Suppose that 100 voters are evenly distributed between the extreme left and the extreme right on the political spectrum, and that all voters vote, and they always vote for the candidate closest to them on this spectrum. The numbers on this spectrum represent the number of voters lying to the left of the number. So, at the midpoint, fifty voters lie to the left and fifty to the right. At the extreme right end, all 100 voters lie to the left. 
Suppose Candidate X is running against Candidate Y. If Candidate Z enters the race:
A. all of the voters who were going to vote for Y will now vote for Z. B. X will win because Y and Z will be competing for the same voters. C. approximately half of the voters who were going to vote for X will now vote for Z. D. most of the voters who were going to vote for Y will now vote for Z.
In long-run equilibrium, a monopolistically competitive firm is producing at a point on its average total cost curve where:
a. price equals marginal cost. b. price equals average total cost. c. price equals marginal revenue. d. marginal revenue equals average total cost.
Providing workers with on-the-job training will increase:
A. the unemployment rate. B. the share of the population employed. C. average labor productivity. D. the labor force participation rate.
Answer the question based on the information given in the table below that shows the items and figures taken from a consolidated balance sheet of the twelve Federal Reserve Banks. All figures are in billions of dollars.
In the balance sheet above for the Federal Reserve, the assets would be items 5 and:
A. 1 and 2
B. 2 and 3
C. 3 and 4
D. 4 and 6