Legislation that offers immediate and easily recognized benefits, at the expense of costs that are observable only in the distant future, is often enacted even when economic inefficiency results. This can be expected because of
a. a lack of incentive for operational efficiency in the public sector.
b. market failure.
c. the special-interest effect.
d. the shortsightedness effect.
D
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Ceteris paribus, if Americans decide they want to drive more German-made cars, this causes the ________ German currency to ________.
A. supply of; increase B. supply of; decrease C. demand for; decrease D. demand for; increase
Indirect business taxes include
A. business property taxes and sales taxes. B. sales taxes and income taxes. C. property taxes and corporate income taxes. D. income taxes and Social Security taxes.
People who drive fuel-efficient vehicles tend to recycle more often than people who drive gas guzzlers. This is an example of
A. difference-in-differences. B. correlation. C. statistical significance. D. causation.
The aggregate supply curve
A) becomes vertical if there is excess production capacity within the economy. B) shows a negative relationship between the price level and real Gross Domestic Product (GDP). C) shows what each producer is willing and able to produce at each income level. D) relates planned aggregate production to price level.