When voting mechanisms substitute for the market mechanism in allocating resources, we are relying on
A. Cost-benefit analysis.
B. Public choice theory.
C. Opportunity cost analysis.
D. Ballot box economics.
Answer: D
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In perfect competition, the buyers are usually looking for
a. easy entry b. familiar brands c. higher-quality goods d. volume discounts e. the lowest price
All of the following are shortcomings of GDP as a measure to human well-being except it:
a. Excludes quality improvements that do not increase price or quantity sold. b. Excludes international transactions. c. Excludes black market and underground transactions. d. Counts harmful and dangerous output the same as useful output. e. Excludes non-market transactions.
What percentage of Americans will find a new job within 14 weeks of being unemployed?
a. 27.8
b. 35.7
c. 63.5
d. 78.4
Which of the following is a belief of the monetarists?
A. They think the Great Depression was made worse by poor conduct of monetary policy. B. They believe monetary policy is transmitted to the economy only through its effect on interest rates and planned investment. C. They believe that the interest-investment curve is horizontal. D. They believe the crowding-out effect is insignificant.