Which of the following is TRUE?
A) When a market price allocates resources, everyone who is able to pay the price gets the resource.
B) A command system works well when the lines of authority and responsibility are clear.
C) When the government decides how to allocate tax dollars among competing uses, resources are allocated by command.
D) When a manager offers everyone in the company the opportunity to win a prize, resources are allocated by a market price.
B
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A firm has achieved technological efficiency whenever it has
A) fully depreciated all its assets. B) produced the given output using the fewest inputs. C) produced the given output at the lowest cost. D) all of the above.
According to the crowding-out view, budget deficits will:
a. reduce interest rates. b. increase interest rates and retard private investment. c. reduce the investments of foreigners in the United States. d. increase the capital stock available to future generations.
Which of the following is used to argue that the self-interest of public policymakers will often lead to actions that are inconsistent with the preferences of the voters they represent?
A) the median voter theorem B) the voting paradox C) rent seeking D) transitivity of voters' preferences
The main contributor to growth in the HPAE according to empirical research was government industrial policies
Indicate whether the statement is true or false