The simple majority decision rule may generate results that are
A) efficient, because the projects undertaken are the ones desired by more than 50 percent of the people.
B) efficient, because projects are undertaken only if total benefits exceed total costs.
C) efficient, because the intensity of individuals' preferences are considered.
D) inefficient when the total benefits of projects undertaken are less than the total costs.
E) inefficient when the intensity of individuals' preferences are considered.
D
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If a consumer receives 22 units of marginal utility for consuming the first can of soda, 20 units from consuming the second, and 15 from the third, the total utility of consuming the three units is
A) 57 utility units. B) 35 utility units. C) 15 utility units. D) unknown as more information is needed to determine the answer.
To solve their basic long-term economic problems, developing countries primarily need
a. food. b. clothing. c. technical assistance. d. shelter.
If demand is price elastic, a decrease in price results in a(n)
a. decrease in total expenditure on the good b. unfavorable shift in tastes and preferences c. decrease in total cost for the seller d. increase in supply of the good e. increase in total revenue to the seller
If a nonbinding price floor is imposed on a market, then the
a. quantity sold in the market will decrease. b. quantity sold in the market will stay the same. c. price in the market will increase. d. price in the market will decrease.