If the budget allocation for a government agency depends on the last period's spending alone, agency heads have a clear incentive to
A. not increase or decrease spending to keep their budget balanced.
B. spend less money if that is the most efficient decision.
C. spend more money even if it is done inefficiently.
D. spend more money only if it is done efficiently.
Answer: C
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New England's exports went primarily to
a. the United Kingdom. b. continental Europe. c. the West Indies. d. Africa.
James used $250,000 from his savings account that paid an annual interest of 15% to purchase a hardware store. After one year, James sold the business for $320,000 . What is his accounting profit?
a. $320,000 b. $70,000 c. $282,500 d. $32,500
Which of the following is an example of a negative externality? a. A Japanese company exports cars to the U.S., which causes American workers to lose their jobs
b. An employee of a chemical company spills acid on his arm, causing severe damage. c. John plants fruit trees in his front yard, which attracts bees, which sting neighbor Mary. d. Sally buys coffee at McDonald's, spills some and burns her hand. e. Jack attempts to fix his roof, falls off, and breaks his leg.
Whenever a country has an absolute advantage in the production of a good, that implies that the country should specialize in the production of that good
a. True b. False Indicate whether the statement is true or false