According to the paradox of voting:
A. public goods that cost more than the total benefits they confer may get produced under
majority voting.
B. trading of votes may either add to or subtract from economic efficiency.
C. the median voter decides what public goods all voters should have.
D. majority voting fails under some circumstances to make consistent choices that reflect the
community's underlying preferences.
Answer: D
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As the dollar depreciates relative to the Russian ruble, U.S. goods become cheaper for Russians to purchase. Therefore, in the foreign exchange market, the
A) supply curve of dollars is downward sloping. B) demand curve for dollars is downward sloping. C) demand curve for euros is upward sloping. D) supply curve of euros is downward sloping.
Suppose in the United States, the opportunity cost of producing a motor engine is 4 auto bodies. In Canada, the opportunity cost of producing a motor engine is 2 auto bodies
a. What is the opportunity cost of producing an auto body for the United States? b. What is the opportunity cost of producing an auto body for Canada? c. Which country has a comparative advantage in the production of auto bodies? d. Which country has a comparative advantage in the production of motor engines?
Suppose the income elasticity of demand for a private college education is equal to 1.5 . This means that
a. every $1 increase in income provides an incentive for a $1.50 increase in expenditures on private college education b. every $1.50 increase in income provides an incentive for a $1 increase in expenditures on private college education c. a 10 percent increase in income causes a 15 percent increase in the demand for a private college education d. a 15 percent increase in income causes a 10 percent increase in the demand for a private college education e. a 10 percent decrease in private college tuition will have a large enough income effect to increase spending on private college education by 15 percent
In a market economy, buyers and sellers communicate their intentions to one another through:
a. government planners. b. negotiations overseen by government agencies. c. elected officials. d. prices.