Government's unfunded liabilities:
A. result from the political bias toward immediate benefits and deferred costs.
B. result in more efficient policies in an attempt to satisfy these liabilities.
C. are caused primarily by market failures.
D. only occur in democratically elected governments.
Answer: A
You might also like to view...
Ronald Coase is famous for the Coase Theorem, which is based on the premise that there is an economically efficient level of pollution reduction
Many economists believe that the tradable emissions allowance program that has been used to deal with the problem of acid rain has been successful in reducing emissions of sulfur dioxide in an economically efficient manner. Why isn't this program an example of the Coase Theorem?
The most competitive industry among the following is one that has
A. price leadership. B. covert collusion. C. open collusion. D. a cartel.
The Keynesian theory is consistent with the business cycle fact that inflation is
A. countercyclical and leading. B. countercyclical and lagging. C. procyclical and lagging. D. procyclical and leading.
Suppose that the normal rate of return in the inkjet printer industry is 10% and the return being earned by firms in this industry equals exactly 5%. Which of the following is likely to follow from this scenario?
A. New firms will want to enter the industry. B. The normal rate of return will fall to 5% in the long run. C. Firms will collude to keep competition out. D. Firms will want to leave the industry.