Public choice theory predicts that
a) voters are rationally ignorant
b) voters are fully informed about the effects of policies
c) governments make choices that achieve an efficient provision of public goods
d) votes are based on reality, not perceptions
Ans: a) voters are rationally ignorant
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Direct controls are considered inefficient because all firms are forced to pay the same costs.
Answer the following statement true (T) or false (F)
It is assumed in economics that people make decisions based upon
A) altruism. B) rational self-interest. C) tradition. D) governmental persuasion.
Which of the following activities would fall under the leisure category in labor-leisure indifference curve analysis
a. cutting your own lawn. b. cleaning your own garage. c. neither a or b. d. both a and b.
Since the wide spread acceptance of the Keynesian view during the 1960s,
A) the federal government has run budget deficits during recessions, but substantial budget surpluses during economic expansions. B) perpetual budget deficits have been the norm. C) the federal government has persistently maintained a balanced budget. D) perpetual budget surpluses have been the norm.