In which case is the political process most likely to result in the acceptance of efficient projects and rejection of inefficient projects?
a. The benefits are highly concentrated, and costs are widespread among voters.
b. The costs are highly concentrated, and the benefits are widespread among voters.
c. Both the benefits and costs are widespread among voters.
d. The benefits accrue primarily in the future, while the costs are more visible during the current period.
C
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Answer the following statements true (T) or false (F)
1. A major advantage of a partnership is the legal separation of personal and partnership assets. 2. In a corporate form of business enterprise, both profits and dividends are subject to income tax. 3. In determining what and how much to produce, the market economy works in a democratic manner based on dollar votes. 4. Government intervention in market economies was and is necessary to remedy the inequities that evolved from economic liberalism.
One advantage of a partnership is
A) lower costs. B) they are easy to form. C) all the profits go to the older partner. D) they are double taxed.
If a monopolist could sell 5 units at $6 and 6 units at $5: a. marginal revenue for the 6th unit is $5
b. marginal revenue for the 6th unit is zero. c. demand is unit elastic over that range of prices. d. both (b) and (c) are true.
Changes in what four variables will shift the long run aggregate supply curve?