Even in a democratic government, elected officials may end up pursuing policies that go against the preferences of the people due to the following reasons, except:
A. Special-interest effect
B. The invisible hand of the market
C. Limited and bundled choice in elections
D. Majority voting system
B. The invisible hand of the market
You might also like to view...
For a given inflation rate, if increasing threats to domestic security cause the government to increase military spending, then the ________ shifts ________.
A. aggregate demand curve; left B. aggregate demand curve; right C. short-run aggregate supply line; downward D. short-run aggregate supply line; upward
The money multiplier tends to be greater when
A) individuals hold less cash. B) individuals hold more cash. C) the reserve ratio increases. D) banks hold more excess reserves.
Which of the following statements is FALSE?
A) Saving helps create economic growth. B) Improvements in quality of education are important for economic growth. C) Free international trade helps create economic growth. D) Faster population growth is the key to growth in real GDP per person. E) Economic freedom requires property rights.
A common resource is used efficiently if
A) the output is maximized. B) marginal social benefit equals marginal social cost. C) marginal private benefit equals marginal private cost. D) marginal social benefit is maximized.