Because majority voting fails to incorporate the strength of the preferences of individual voters, it:
A. creates negative externalities.
B. under some circumstances produces economically inefficient outcomes.
C. leads to market failure.
D. leads to politics dominated by special interest groups.
Answer: B
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Which of the following sequences results from an increase in the price level?
a. the money demand curve shifts leftward, the interest rate decreases, investment spending and autonomous consumption increase, the aggregate expenditure line shifts downward and there is a leftward movement along the aggregate demand curve. b. the money demand curve shifts rightward, the interest rate increases, investment spending and autonomous consumption decrease, the aggregate expenditure line shifts downward and there is a leftward movement along the aggregate demand curve. c. the money demand curve shifts leftward, the interest rate increases, investment spending and autonomous consumption increase, the aggregate expenditure line shifts downward and there is a leftward movement along the aggregate demand curve. d. the money demand curve shifts leftward, the interest rate drops, investment spending and autonomous consumption decrease, the aggregate expenditure line shifts downward and there is a leftward movement along the aggregate demand curve. e. the money demand curve shifts rightward, the interest rate increases, investment spending and autonomous consumption increase, the aggregate expenditure line shifts downward and there is a rightward movement along the aggregate demand curve.
If the exchange rate is 80 yen per dollar, then a hotel room in Tokyo that costs 25,000 yen costs $200
a. True b. False Indicate whether the statement is true or false
The key concept that serves as the basis for the study of economics is:
A. unemployment. B. scarcity. C. opportunity cost. D. money.
Average product is calculated by dividing total product by the
A. quantity of the variable input. B. production function. C. quantity of the fixed input. D. amount of variable and fixed inputs employed.