Public choice analysis suggests that the primary motivating factor for politicians will be finding the policies that are most likely to
a. get them reelected.
b. improve economic efficiency.
c. improve the welfare of society as a whole.
d. anger the interest groups that provide substantial contributions to their campaigns.
A
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
Which of the following mergers is an example of vertical integration?
A. AT&T purchases MCI. B. IBM purchases a California computer chip company. C. Bethlehem Steel purchases U.S. Steel. D. GM purchases Ford.
Answer the following questions true (T) or false (F)
1. The total value of production from Ford's manufacturing plant in Cologne, Germany would be included in Germany's gross national product. 2. Transfer payments are subtracted from national income to get to personal income. 3. For developed countries like the United States, GDP will always exceed GNP.
Refer to the graph below, showing the long-run supply and demand curves in a purely competitive market. We know that in this market, the marginal:
A. Cost equals marginal benefit at P1Q1
B. Benefit exceeds marginal cost at the output level of Q2
C. Cost exceeds marginal benefit at the output level of Q2
D. Cost equals marginal benefit at all points on the supply curve