As long as politicians know what voters want, government will deliver allocation and productive efficiency. Evaluate
Please provide the best answer for the statement.
This is not a true statement. Voters often support policies that reduce efficiency, both allocation and productive. Voters in many countries support minimum wage laws and other price controls, tariffs on foreign products and other trade constraints, and industrial and agricultural subsidies. These policies reduce economic efficiency, but are often supported by politicians even if they know they are harmful to the economy.
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The aggregate demand curve shows the ________ relationship between the price level and ________
A) positive; the quantity of real GDP demanded B) negative; aggregate labor demanded C) positive; aggregate labor demand D) negative; the quantity of real GDP demanded
In the production function for new ideas and technology in ________, a decrease in the labor force will ________ the growth rate of technological change
A) the AK growth models; decrease B) the AK growth models; increase C) the two-sector growth model; decrease D) the two-sector growth model; increase
A U.S. grocery store chain bought $800,000 worth of Kenyan currency from a bank in Kenya. It then used these funds to buy $800,000 worth of coffee from Kenyan coffee growers. As a result of this exchange, by how much and in which direction did: A. U.S. net exports change? B. U.S. net capital outflow change?
A price ceiling established below the market clearing price will usually cause
A) nonprice rationing. B) an excess supply. C) no change in the market clearing price. D) a decrease in the market clearing price.