Preferred Budgets ($ in millions)45678910Number of voters (in thousands)516253022193Table 15.3Table 15.3 shows the preferred budget for a new performance center and the number of voters in a community who prefer that budget. Suppose that Dawn initially proposed $5 million while Terry proposed $9 million. Given the distribution of voters' preferences, Terry can increase her chance of being elected by proposing:
A. a greater budget than $9 million.
B. a smaller budget than $5 million.
C. a smaller budget toward the median budget.
D. None of these
Answer: C
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According to the Keynesian model, real wages should
A) remain constant. B) fall during recessions. C) rise during recessions. D) stay the same during recessions but rise during expansions.
All of the following conditions must exist for the median-voter theorem to hold except that:
A. there is a single one-dimensional policy question. B. candidates win by majority vote. C. there are only two candidates. D. the policy being voted on must be uncontroversial.
Which of the following is true about time lags and fiscal policy? a. Changes in federal taxes can be implemented easily by the President without the approval of Congress
b. Changes in fiscal policy that involves changes in government spending on public works projects do not involve significant time lags. c. Once an appropriate fiscal policy has been determined it can be implemented quickly. d. The lag time between when a fiscal policy is needed and when it is actually implemented is considerable.
Which of the following is a benefit of affirmative action programs?
A) They ensure that qualified minorities are not being passed over in favor of less-qualified applicants. B) They ensure a fundamental sense of fairness in hiring and promotion. C) They can provide a means and an incentive for members of historically underperforming groups to intentionally change their characteristics, such as investing in education and acquiring experience. D) All of the above are benefits of affirmative action programs.