The political business cycle involves the ________
A) expenditure of substantial funds by industry lobbyists to manipulate government regulation
B) movement of individuals from government employment to positions within the industry they had previously participated in regulating
C) use of expansionary fiscal policy just prior to elections
D) election of government officials who are supportive of the government sector
C
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Ingrid has been waiting for the show "Mamma Mia!" to come to town. When it finally does come, tickets cost $60. Ingrid's reservation price is $75. But when Ingrid tries to buy a ticket, they are sold out. Ingrid decides to try to buy a ticket from a scalper (a person who purchased extra tickets at the box office with the intent to resell them at a higher price). If Ingrid finds someone who is willing to sell her a ticket for $70, she should:
A. purchase the ticket even though doing reduce total economic surplus. B. not purchase the ticket because it is overpriced. C. not purchase the ticket because the cost to the scalper was only $60. D. purchase the ticket because doing so will make her $5 better off.
Consumption bundles that lie above the boundary established by the budget line:
A. are affordable for the consumer. B. are preferred by the consumer but are not affordable. C. are not preferred by the consumer. D. do not exhaust the consumer's income.
Based on the graphic for perfect competition versus monopoly, the deadweight loss for a monopoly is ______.
a. area a
b. area b
c. area c
d. zero
Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ________ and real GDP to be ________
A) higher; higher B) higher; lower C) lower; higher D) lower; lower