Answer the following statement(s) true (T) or false (F)
1. A drafted army can be unnecessarily costly in two ways: it can be the wrong size or it can consist of the wrong people.
2. A draft is better for society because it is less costly than a volunteer army.
3. The Fabian argument that confiscation of rents would not lower social welfare overlooks the costs of resource misallocation.
4. The use of signals in an economy is both individually rational and socially efficient.
5. Because of adverse selection, no good used cars ever change hands.
1. True
2. False
3. True
4. False
5. True
You might also like to view...
Paper money, such as the U.S. dollar, the Israeli shekel, or the euro, that is not backed by and is not convertible into any other good, is called
a. gold-exempt money b. specie money c. paper-valued money d. government-generated money e. fiat money
Public employees (more frequently than private employees) tend to
A. begin and end their career with the same employer. B. have well-funded private savings plans. C. fall for Ponzi schemes. D. participate in defined contribution programs.
Using assumptions to make things simpler and focus attention on what really matters is like using a road map to plan a trip.
Answer the following statement true (T) or false (F)
What is the difference between physical capital and human capital?
What will be an ideal response?