Which of the following scenarios would support the theory of public choice?
A. A college president eliminates wasteful departments and programs even though this will shorten her tenure and her political future.
B. The president of Colombia goes after drug traffickers despite death threats and the offer of bribes that could make him a rich man.
C. The governor of the state vetoes a highway bill even though the highway would enhance the value of property he or she owns.
D. The local police chief fails to give the mayor a speeding ticket because the mayor might fire him.
Answer: D
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Refer to the information provided in Figure 28.8 below to answer the question(s) that follow.
Figure 28.8Refer to Figure 28.8. Along SRPC2, expected inflation equals
A. 4%. B. 5%. C. 6%. D. cannot be determined from the figure.
Scarcity is a condition that is everywhere and always, since it is based upon two assumptions that reflect permanent universal conditions. The assumptions are that
a. more output satisfies more wants b. there are limited wants. d. the world has limited productive resources
Which of the following is true of a perfectly competitive market in the long run, given the unchanging costs of production? a. The average total cost remains constant
b. The market price increases exponentially. c. The marginal cost curve is perfectly elastic. d. The supply curve is perfectly elastic.
Using the UIP equation, what would happen to the spot rate for euros if the interest rate on euro deposits rises ceteris paribus?
a. The spot rate to purchase euros would rise (dollar depreciation). b. The spot rate to purchase euros would fall (dollar appreciation). c. The spot rate to purchase euros would be unchanged. d. The U.S. Federal Reserve would have to raise U.S. short-term interest rates