Assuming that the two key restrictions on preferences fundamental to the median voter model hold, list the condition that must be satisfied for the outcome preferred by median voter to be considered economically efficient
List one real world example that comes close to this condition.
In order for the outcome preferred by the median voter to be economically efficient, the median voter's share of the total demand for the good must equal the median voter's tax share. One real world example that approximates this condition is gasoline taxation that pays for highway funding.
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The rule of 72 is a formulation that allows us to know, in a very quick and simple manner, the approximate time it takes to double a number that grows at a constant rate
a. True b. False Indicate whether the statement is true or false
When a firm experiences declining long-run average total costs as it produces more output, it is known as a(n)
A) oligopoly. B) rent seeker. C) natural monopoly. D) monopolistic competitor.
Table 6.3: Population and Labor Force Year 1Year 5Working Age Population200 million250 millionLabor Force110 million145 millionEmployed106 million135 millionWhat is the labor force participation rate in Year 1 in Table 6.3?
A. 55.0 percent. B. 3.6 percent. C. 96.4 percent. D. 53.0 percent.
Relating to the Economics in Practice on page 357: An individual with a parent who has Huntington's disease has a 50 percent chance of also having the disease, and can use this information when deciding on the purchase of health insurance. This is an example of ________ favoring potential insurance buyers.
A. adverse selection B. moral hazard C. asymmetric information D. market signaling