Political institutions are more likely to allow and encourage the emergence of good economic institutions and policies when
a. the top government executives have enough power to impose good economic arrangements on the nation.
b. constitutional constraints prevent laws and regulations that weaken the rights of property owners, curtail voluntary exchange, and provide for decentralization of government.
c. the elected executive and legislative branches have fewer constraints on what they can do, leaving them free to innovate and improve economic institutions.
d. well organized interest groups exert a powerful influence on the political process.
B
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The period from 1977 through 1989 saw a wave of corporate mergers in the U.S. These mergers were characterized by
a. the use of junk bonds for financing buyouts. b. the low debt-to-equity ratios of the resulting firms. c. resulting firms that focused on "core competencies" rather than diversification. d. a "buyers' market" in which acquiring firms could purchase the stock of takeover targets for less than market value. e. All of the above.
Unions and employers use collective bargaining to negotiate
a. wages only b. wages and employee benefits only c. employee benefits only d. working conditions only e. wages, employee benefits, and working conditions
"Rent seeking" describes the search and battle for opportunities to collect economic rents
a. True b. False Indicate whether the statement is true or false
Consider the above figure. The equation for the consumption function is
A. C = 40 + 0.1Yd. B. C = 40 + 0.33Yd. C. C = 40 + 50Yd. D. C = 40 + 60Yd.