Assuming that the median voter model accurately explains how public sector decision are made, resources will be allocated efficiently if _____
a. preferences are single-peaked and individuals prefer outcomes closer to their preferred outcome rather than outcomes farther away
b. rational ignorance and cyclical majorities are not present
c. resources were already allocated efficiently in the private sector
d. the median voter's demand is the same fraction of total demand as his tax share is of total taxes
d
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The marginal rate of technical substitution (MRTS) along an isoquant:
A) is equal to the price ratio at all points along an isoquant. B) is equal to the ratio of the marginal utilities of the two goods. C) is equal to the ratio of the marginal products of the two inputs. D) remains constant as we alter the combinations of the two inputs.
Discuss the three basic types of economic systems
An activity is productive if it
What will be an ideal response?
When the manager of a department store attaches price tags to his/her products, he/she is using money as a
A. unit of account. B. unit of transfer. C. store of value. D. medium of exchange.