The shortsightedness effect suggests that
A) politicians have a strong incentive to support projects that yield benefits in the distant future, especially when the costs of the project must be paid for in the current period.
B) politicians have a strong incentive to support projects that yield immediate and easily recognized benefits, especially when the costs of the projects are difficult to identify and are observable only in the distant future.
C) legislators will be unwilling to trade votes on issues, especially when those issues benefit only special interest groups.
D) voters will tend to weigh future costs and benefits more heavily than current costs and benefits.
B) politicians have a strong incentive to support projects that yield immediate and easily recognized benefits, especially when the costs of the projects are difficult to identify and are observable only in the distant future.
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A decrease in the price of driver liability insurance will ________ the ________ for new automobiles
A) decrease; demand B) increase; demand C) decrease; supply D) increase; supply E) None of the above is correct.
What is the present value of $575 in a one year if the current rate of interest is 4 percent?
A) $410.71 B) $552.88 C) $598 D) $805
In economics, the demand for a good refers to the amount of the good people: a. would like to have if the good were free
b. will buy at various prices. c. need to achieve a minimum standard of living. d. will buy at alternative income levels.
Thomas Robert Malthus said that
A. the food supply doubled every 25 years. B. the population doubled every 25 years. C. both the food supply and population doubled every 25 years. D. neither the food supply nor population doubled every 25 years.