Why doesn't the process of electing officials prevent rent-seeking and corruption?
A. The cost of gathering such information is often too costly.
B. Those who win special favors through this behavior simply pay others off to keep them from whistleblowing.
C. It actually does prevent this behavior in the real world.
D. People are generally disinterested in preventing both of these in government.
A. The cost of gathering such information is often too costly.
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Which shifts the aggregate demand to the right?
A. Increase in government purchases B. Reduction in consumer spending. C. The selling of government securities by Fed Reserve Bank D. Downsizing of corporate investment spending
If a product has a diminishing, but positive, marginal utility, then total utility
A. increases at a diminishing rate. B. decreases at a diminishing rate. C. decreases at an increasing rate. D. will become negative.
Appendix: Winning an auction can be exhilarating, but it can also lead to doubt as to whether you did the right thing or not. This is called:
a. The regret effect. b. Moral hazard. c. Second wind. d. The winner's curse.
Who believes that marginal analysis provides the best model of a firm's behavior?
a. William Baumol b. John K. Galbraith c. Milton Friedman d. Richard Lester e. Lester Thurow