Public choice theory suggests that politicians will be most likely to favor redistribution of income from
a. the rich to the poor.
b. unorganized taxpayers to well-organized interest groups.
c. well-organized business groups to consumers.
d. none of the above.
B
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Examples of off-balance-sheet activities include
A) trading activities. B) extending loans to depositors. C) borrowing from other banks. D) selling negotiable CDs.
We say there is productive inefficiency in saving lives if
a. there is some way to save more lives b. there is some way to save more lives without sacrificing any other goods or services c. all resources are devoted to saving lives d. no resources are devoted to saving lives e. anyone dies before reaching his or her life expectancy
As additional consumers obtain the benefits of a pure public good, such as national defense, the benefits to the existing consumers will:
A. stay the same. B. increase in the short run, but decrease in the long run. C. decrease. D. increase.
Higher interest rates ____ the ____ cost of holding currency and therefore reduce the quantity of currency demanded.
A. decrease; opportunity B. increase; transaction C. decrease; transaction D. increase; opportunity