A common assumption that economists make about the behavior of elected officials is that they try to
a. maximize the size of their government salaries
b. maximize the size of their control over the budget process
c. maximize the number of votes they receive in the next election
d. minimize the government's expenditures in order to balance the budget
e. conform to the wishes of special interest groups so that the government behaves as a single, consistent decision maker
C
You might also like to view...
Robert Tadmur exports processed turkey and has an upward sloping supply curve. The supply curve indicates that Robert faces a marginal cost of $0.25 or less per pound for supplying the first few pounds. But every producer in this market sells turkey at the market clearing price of $0.50 per pound. The difference between the actual amount that Robert receives and what he would accept to supply the
market clearing quantity is called a. consumer surplus b. importer surplus c. producer surplus d. trade deficit e. average variable cost
If the Federal Open Market Committee (FOMC) decides to expand the money supply, then: a. it will issue directions to sell U.S. government securities, thus increasing the velocity of circulation of the money supply. b. it will issue directions to purchase U.S. government securities, thus putting more reserves in the hands of banks. c. it will order new Federal Reserve notes delivered to member
banks. d. it will raise the discount rate to member banks.
Which of the following is considered a classic example of an externality?
a. pollution b. monopoly c. sunlight d. inflation
Which of the following shows the feasible combinations of two goods that a consumer could afford given her money income?
A) the budget constraint B) the indifference map C) the income consumption curve D) the price consumption curve