According to economic theory, the political process tends to
A) benefit every participant equally.
B) harm every participant equally.
C) concentrate benefits in the hands of special interest groups and disperse the costs throughout the uninformed voters.
D) support public projects that clearly pass a strict benefit-cost analysis.
C
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What is the effect on real GDP per person if labor productivity increases?
What will be an ideal response?
In the above figure, the most efficient way to produce 15 units is to hire
A) 2 workers. B) 3 workers. C) 4 workers. D) 5 workers.
Country A has a more equal distribution of income than country B if
A) country A's Lorenz curve is closer to the line of equality than is country B's Lorenz curve. B) country B's Lorenz curve is closer to the line of equality than is country A's Lorenz curve. C) country A's Lorenz curve is just as close to the line of equality as is country B's Lorenz curve. D) None of the above because it is impossible to compare income inequalities across countries.
Policy makers find that creating inflation is much more difficult than creating disinflation because expectations begin to change as inflation takes hold
a. True b. False Indicate whether the statement is true or false