If preferences are one-dimensional and preferences are single peaked, majority rule will result in selection of the project most favored by
a. no one
b. the median voter.
c. the average voter.
d. everyone.
b
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According to the quantity theory of money, if the growth rate of money supply is 6% and the growth rate of real GDP is 9%, then the growth rate of nominal GDP in the economy will be:
A) 9%. B) 6%. C) 3%. D) 15%.
If the U.S. government decides to distribute surplus cheese to food banks for the homeless, the government is addressing the question of
a. which goods and services should be produced with society's scarce resources b. what production methods should be used to produce goods and services c. how will output be allocated among the individuals in the society d. what prices will be charged for goods and services e. determining the optimal degree of specialization
Suppose Joe has a two-year old Honda Civic that's in excellent condition and that he would be willing to sell for $13,000. Lauren, who is risk-neutral, is considering whether to buy Joe's car. She's willing to pay $14,000 for a two-year Honda Civic that's in excellent condition and only $10,000 for one that's not in excellent condition. Lauren cannot tell whether Joe's car is in excellent condition. She believes that only 20 percent of two-year old Hondas for sale in the market are in excellent condition and that the other 80 percent are not in excellent condition. If Joe offers a warranty in which he makes a legally binding commitment to pay for any major repairs the car needs in the next 18 months, then this ________ serve a credible signal because ________.
A. will; it is more costly for people with low-quality cars to offer such a warranty B. will not; people who sell used cars are rarely honest C. will; people who own cars that are in excellent condition are usually honest D. will not; it is less costly for people with low-quality cars to offer such a warranty
When would it make sense for a factory that is losing money to remain in operation?
(A) If the revenue from the goods being manufactured exceeds the operating cost. (B) If marginal revenue is equal to marginal cost. (C) If total cost of the goods being manufactured exceeds the operating cost. (D) If marginal product of labor becomes negative.