One result of the public choice model is that most economists believe that
A) policymakers may have incentives to intervene in the economy in ways that do not promote economic efficiency.
B) the voting paradox will prevent voters from selecting the best person for public office.
C) when market failure occurs, government intervention will always lead to a more efficient outcome.
D) government intervention will always result in a reduction in economic efficiency in regulated markets.
A
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Economics examines the options open to households, business firms, governments, and entire societies by the limited resources at their command.
Answer the following statement true (T) or false (F)
Refer to Figure 36.4 for the dollar-yen foreign exchange market. A decrease in demand from D1 to D2 could have been caused by
A. An increase in the number of Japanese visitors to the United States. B. A quota placed on Japanese television imports to the United States. C. A poor performance by the Japanese stock market compared to the U.S. stock market. D. A decrease in the demand for U.S. computers.
Recall the Application about the effects of increasing state level Earned Income Tax Credit (EITC) on child health in the United States to answer the following question(s).Recall the Application. According to the study cited in the Application, does EITC improve income distribution?
A. Yes, aside from increasing income for low-income households, it improves the health levels of the worker and their families. B. Yes, EITC encourages workers to sop working and get an education in the health industry. C. No, only the politicians get rich because of EITC. D. No, the level of spending on EITC is so low it has no measurable effects on incomes of the poor.
The production possibilities curve represents the set of all:
A. feasible combinations of goods that the economy can produce given that a nation's resources are fully employed. B. factors of production that can be used to manufacture goods and services. C. combinations of goods and services that can be used in the production of other goods and services. D. nonlinear forms of production in the economy.