A Groves mechanism is a procedure for setting the level of a public good that:
A. induces everyone to report their preferences correctly.
B. induces everyone to overstate the benefit they receive from a public good.
C. induces everyone to understate the benefit they receive from a public good.
D. only works if the public good in question is free of externalities.
A. induces everyone to report their preferences correctly.
You might also like to view...
The belief that the U.S price level will rise in the future will tend to cause, other things the same ________
A) no change in the value of the U.S. dollar B) an increase in the value of the U.S. dollar C) no change in the value of the U.S. dollar in the short-run D) a decrease in the value of the U.S. dollar
If the above figure accurately portrays the market conditions for a given monopolist, we can be assured that the monopolist
A) is making a normal profit. B) is producing at the level that will maximize benefit to society. C) is making excessive profits. D) will be forced to go out of business in the long run.
Capital can be treated as a free resource
Indicate whether the statement is true or false
The federal income tax is a good example of a
a. regressive tax. b. proportional tax. c. digressive tax. d. progressive tax.