Consider a policy proposal that aims to save small dairy farms by providing an annual lump sum subsidy to dairy farms with fewer than two hundred dairy cows
Why might this proposal pass, even if it benefits a few dairy farmers at the expense of the majority of voters? a. The program might only cost each voter a few pennies and yet benefit small dairy farmers immensely. b. The American people value the small dairy farm highly and want to see it preserved. c. A cyclical majority makes it possible for the proposal to pass although it is not generally preferred.
d. Voters think it will result in cheap milk.
a
You might also like to view...
On a balance sheet, a company's accounts receivable are listed as
A) current liabilities. B) goodwill. C) current assets. D) stockholder's equity.
The Solow model demonstrates that
A) in the absence of productivity growth, economic growth will turn negative in the long run. B) in the absence of productivity growth, economic growth will reach a steady state of zero per-capita growth in the long run. C) productivity growth must exceed the rate of growth in the population to avoid a steady state in the long run. D) productivity growth will inevitably decline due to diminishing marginal productivity.
A construction company builds roads with machinery (capital, K) and labor (L)
If we plot the isoquants for the production function so that labor is on the horizontal axis, then a point on the isoquant with a small MRTS (in absolute value) is associated with high ________ use and low ________ use. A) labor, capital B) capital, labor C) concrete, gravel D) none of the above
How do advocates of discretionary stabilization policy view frequent changes in spending and tax policy?
a. The changes make the economy more difficult to forecast. b. The changes make life more difficult and hectic for Congress and the Fed. c. The changes smooth out the business cycle, making planning easier. d. The changes cause more instability in the economy and make planning more difficult.