Two candidates are running for election as mayors of New York City that was recently impacted by Superstorm Sandy. In their election platforms, both candidates supported spending very similar amounts on hurricane protection
This similarity is most likely the result of A) both candidates necessarily having the same preferences towards risk and protection.
B) the Principle of Minimum Differentiation.
C) both the candidates realize that hurricane protection is a public good.
D) politicians only take efficiency into account and hence all candidates will suggest the efficient outcome.
B
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Supply-side economic policies are best viewed as
a. a short-run countercyclical tool. b. a long-run strategy to promote economic growth. c. a strategy for the control of long-run inflation. d. a stabilization tool to smooth the ups and downs of the business cycle.
Investment in human capital
A. shifts the aggregate production function downward. B. shifts the LRAS to the left. C. shifts the aggregate production function upward. D. decreases the aggregate demand for labor.
The effect of imposing a lump-sum tax is to:
A. reduce the absolute levels of consumption and saving at each level of GDP and to reduce the size of the multiplier. B. reduce the absolute levels of consumption and saving at each level of GDP but to not change the size of the multiplier. C. reduce the absolute levels of consumption and saving at each level of GDP and to increase the size of the multiplier. D. increase the absolute levels of consumption and saving at each level of GDP and to increase the size of the multiplier.
In 2009, the gap between foreign assets in the United States and U.S. assets abroad was
A. $3 trillion. B. $2.5 trillion. C. $4 trillion. D. $6.5 trillion.