An important assumption in the theory of public choice is that
A) individuals will act within the political process to maximize their individual well-being.
B) individuals will act within the political process to maximize their collective well-being.
C) individuals will only operate outside the political process when their well-being is involved.
D) scarcity does not exist in the government sector.
A
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Suppose the quantity of oranges demanded is less than the quantity supplied. Then
A) the market still clears, because consumers can buy all the oranges they wish at the prevailing market price. B) the market still clears, because producers can sell all the oranges they wish at the prevailing market price. C) the market clears, but is not fully coordinated. D) oranges are no longer scarce goods. E) none of the above is true.
The LM curve represents combinations of income and interest rate which
A) clear the goods market. B) achieve the external equilibrium. C) clear the money market. D) achieve internal equilibrium.
The Securities and Exchange Commission is
A. responsible for regulating U.S. commercial banks. B. responsible for enforcing antitrust law. C. responsible for monitoring the activities of U.S. stock markets. D. responsible for monitoring currency exchanges.
Everything else equal, an increase in the supply of loanable funds will
a. lower the interest rate and reduce investment spending b. lower the interest rate and increase investment spending c. increase the demand for funds d. increase the interest rate and reduce investment spending e. increase the interest rate and increase investment spending