According to economic theory, it is often rational for a politician to support special interest groups at the expense of unorganized, widely dispersed groups (for example, taxpayers or consumers)
a. only when the gains that accrue to the special interest group exceed the costs imposed on other voters.
b. when nonspecial-interest voters are unconcerned or uninformed about the issue, and campaign funds are readily available from the special interest group.
c. only if the government action is socially efficient.
d. only if the government action will reduce the monopoly power of business or labor and, thereby, lead to an improvement in the general welfare of consumers.
B
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Child abuse investigators are responsible for:
a) assessing the safety of children who are at risk of maltreatment. b) deciding what types and levels of services may be immediately needed to keep children safe. c) determining under what conditions children must be placed in out-of-home care for their protection. d) all of the above
Searching the internet for information to help select a product that is more reliable is most likely to be done by a
A) risk-averse person. B) risk-neutral person. C) risk-preferring person. D) This cannot be determined with the information provided.
Refer to the accompanying figure. If this economy were currently operating at point D, then in order to make more movies:
A. the first productive resources to switch to making movies should be those with the highest opportunity cost of making milk. B. no productive resources would need to switch from making milk to movies because point D is already efficient. C. the first productive resources to switch to making movies should be those with the lowest opportunity cost of making milk. D. no productive resources would need to switch from making milk to movies because each resource should continue to be used according to its comparative advantage.
Which of the following is NOT an example of an international public good?
A) Capital flows to less-developed countries B) Last-resort lending C) Open markets during a recession D) Regional trade agreements