Answer the following statement true (T) or false (F)
1) The size and scope of government inhibit the flow of information to decision makers, leading to
inefficient outcomes.
2) The pursuit through government of a transfer of wealth at society's expense is called "rent
seeking."
3) The principal-agent problem is a problem for the private sector but does not apply to political
decision making.
4) Medicare is the U.S. government's largest unfunded liability.
5) A debt crisis refers to how much government spending exceeds tax revenues in a given year.
1) T
2) T
3) F
4) F
5) F
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The long run is a period of:
a. at least one year. b. sufficient length to allow a firm to expand output by hiring additional workers. c. sufficient length to allow a firm to alter its plant size and capacity and all other factors of production. d. sufficient length to allow a firm to transform economic losses into economic profits by hiring better workers.
Voters' Ordered PreferencesAbbyBobCarloPublic parksPublic zooPublic transportationPublic zooPublic transportationPublic parksPublic transportationPublic parksPublic zooIf a pair-wise majority vote was held and the voters' preferences are shown in the table, which of the following is true?
A. The preferences of each member is transitive. B. The outcome of the vote will not change, regardless of voting method. C. The most efficient outcome for the group will occur if pair-wise majority voting was used. D. The collective preferences of the group are transitive.
The most desirable combination of output attainable with available resources, technology and social values is known as the:
a) Optimal mix of output. b) Economic choice of output. c) Preferred output choice. d) Efficient choice of production.
If you know that an increase in a household's disposable income from $35,000 to $45,000 leads to an increase in consumption from $30,000 to $38,000, then you can conclude that the:
a. Marginal propensity to save is .25 b. Marginal propensity to consume is .8 c. Slope of the consumption schedule is .75 d. Average propensity to consume is .8