When there are no constitutional constraints on democracy, politicians will
What will be an ideal response?
find it advantageous to provide income transfers and other favors to interest groups in exchange for votes and political contributions, and this will eventually lead to budget deficits, high taxes, and economic stagnation.
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Refer to the graph shown. 
The top 20 percent of the families earn:
A. 67.4 percent of the income. B. 54.7 percent of the income. C. 32.6 percent of the income. D. 45.3 percent of the income.
For a monopolist, the reason that marginal revenue is less than price is
A) because of the perfectly elastic demand curve that the monopolist faces. B) because the monopolist must lower the price of the good in order to sell an additional unit. C) because of the U-shaped average revenue curve. D) because of the lack of competition in the market.
Refer to the information provided in Figure 9.1 below to answer the question(s) that follow. 
Figure 9.1Refer to Figure 9.1. If this farmer maximizes profits, his average total cost will be
A. $7. B. $9. C. $11. D. $15.