A free rider is a person who
a. will only purchase a product on sale.
b. receives the benefit of a good but avoids paying for it.
c. can produce a good at no cost.
d. rides public transit regularly.
b
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When measured as a share of the total federal budget, entitlement spending has doubled over the last 50 years
Indicate whether the statement is true or false
Suppose that you are an analyst working for a venture capital firm. An individual contacts you about backing his brand new Internet company. What information would you want before making this decision?
What will be an ideal response?
Congressman Flack votes for a program that will benefit the constituents of Congressman Walpole. Which of the following explanations for Flack's vote is most consistent with the public choice model?
A) Congressman Flack did not have time to read and understand all of the legislation he voted on. Members of Congress often depend on their staffs to read proposed legislation and recommend how they should vote. B) Legislators such as Congressman Flack are similar to other decision-makers in that they sometimes make irrational choices. C) Congressman Flack expects Congressman Walpole's support for programs that will benefit Flack's constituents. D) Congressman Flack will support programs of legislators from his own party, regardless of who benefits from these programs.
When RBC economists compare the volatility in their models to the data, what are they looking at?
A) The degree to which variables lead output over the business cycle B) The strength of procyclicality of different variables C) The amount of random variation in economic variables D) The degree to which different economic variables move together