A problem that exists when naturally occurring incentives encourage sufficient numbers of people to act in a way that makes everybody worse off is called a
A) zero-sum problem.
B) cause-and-effect problem.
C) collective action problem.
D) trade-off.
C
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If the quantity of money demanded is less than the quantity of money supplied, then the
A) interest rate will decrease. B) interest rate stays the same. C) interest rate will increase. D) effect on the interest rate is indeterminate.
The budget line represents a consumer’s preferences for a commodity.
Answer the following statement true (T) or false (F)
In the formula used to measure the growth rate of multifactor productivity, the contribution of labor is represented by
A) bn. B) bk - bn. C) y - bk. D) (1 - b)n.
Congress expects Social Security and Medicaid to fall short of revenue that will be needed to cover promised benefits in the future. On what evidence are these expectations based?