The Arrow impossibility theorem explains
A) why government regulation of private markets will always result in a reduction in economic efficiency in these markets.
B) why voters are always rationally ignorant.
C) why there is no system of voting that will consistently represent the underlying preferences of voters.
D) why it is not possible to provide the economically efficient amount of any public good.
C
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Discrimination occurs when someone is denied employment on the basis of some non-economic factor such as race, religion, or gender
a. True b. False Indicate whether the statement is true or false
Mutual interdependence is an important characteristic of a monopolistically competitive market
Indicate whether the statement is true or false
Which of the following is not correct?
a. Toys for Tots, a program that collects new toys to distribute to poor children at Christmas, is an example of an in-kind transfer. b. Supporters advocate the use of in-kind transfers because they restrict the ability of recipients to purchase alcohol and drugs. c. Critics argue that in-kind transfers are inefficient and disrespectful. d. For a program to qualify as an in-kind transfer, it must have government approval.
Given the following formula for the Taylor rule:Target federal funds rate = natural rate of interest + current inflation + 1/2(inflation gap) +1/2(output gap) if the current rate of inflation is 4%, natural rate of interest is 2%, and the target rate of inflation is 2%, and output is 3% above its potential, the target federal funds rate would be:
A. 4.5%. B. 7%. C. 8.5%. D. 5%.