Describe the political marketplace. Who are the participants, what do they do, and what is a political equilibrium?
What will be an ideal response?
Voters, firms, politicians, and bureaucrats interact in the political marketplace. Voters and firms demand policies. Voters provide votes and/or funds while firms supply funds and other help to politicians or political parties that supply the policies they want. Politicians and political parties supply the policies and in exchange receive votes and/or contributions from voters and firms. Politicians attempt to supply proposals that attract enough votes to be elected and then reelected. Bureaucrats are in charge of implementing the policies.
The political equilibrium is a situation in which no one has the incentive to change their efforts or their policies.
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In the foreign exchange market, an increase in the world demand for U.S. exports shifts the
A) demand curve for U.S. dollars rightward. B) demand curve for U.S. dollars leftward. C) supply curve for U.S. dollars leftward. D) supply curve for U.S. dollars rightward.
In the above table, which tax plan is proportional?
A) only plan A B) only plan B C) only plan C D) both plan A and plan C
How did Keynes propose to solve the problem of high unemployment?
A) Increase the growth rate of the money supply. B) Allow wages to decline, so that firms will want to hire more workers. C) Put on wage and price controls, so wages won't rise and firms won't have to lay people off to cut costs. D) Have the government increase its demand for goods and services.
In which type of contract is the agent paid per unit of output?
A) A commission based contract. B) A sharecropping contract. C) A piece rate contract. D) A contract with stock options as salary.