Assume that you are a member of the U.S. House of Representatives from your home state and district. Which of the following best explains why you have a strong incentive to get the federal government to finance pork-barrel projects in your district?
a. Most of the benefits of pork-barrel projects within your district will accrue to your constituents, while most of the costs will be imposed on voters from other districts.
b. Most of the costs of pork-barrel projects within your district will be imposed on your constituents, while most of the benefits will accrue to voters from other districts.
c. Pork producers are a powerful political lobby that will influence the actions of legislators in all districts.
d. This is a trick question; in a representative democracy, there is little incentive for legislators to support pork-barrel projects.
A
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Why is it difficult for policy makers to rely on the theoretical discussion of the money multiplier to target the money supply?
A. The equation of exchange has been proven to be wrong. B. There is no good measure of reserves in the economy. C. The use of quantitative easing has made it impossible to accurately determine the money supply. D. The amount of excess reserves and cash in the system varies.
Measurement of economic values after adjustments have been made for changes in the average of prices between years in known as
A. a deflator. B. real values. C. nominal values. D. the price index.
For a monopolist, marginal revenue is always
A. equal to zero. B. greater than price. C. equal to price. D. less than price.
In the above figure, the indifference curves indicate that the two goods are
A) perfect complements. B) perfect substitutes. C) ordinary goods. D) normal goods.