Refer to the data. Plan C entails:
The following data are for a series of increasingly extensive flood control projects:
A. marginal benefits in excess of marginal costs.
B. fewer spillovers than either Plan A or Plan B.
C. an overallocation of resources to flood control.
D. an underallocation of resources to flood control.
C. an overallocation of resources to flood control.
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If the opportunity cost of entrepreneurship increases:
A) the aggregate demand in the economy increases. B) the number of entrepreneurs in the economy will increase. C) the price level in the economy falls. D) the aggregate output of the economy will decrease.
If the Fed wants to maintain a dollar exchange rate of 1.20 euros per dollar but the exchange rate rises, then in the short run the Fed can
A) buy dollars and buy euros. B) do nothing. C) sell dollars and sell euros. D) buy dollars and sell euros. E) sell dollars and buy euros.
The pig farm industry is perfectly competitive. Which of the following is true?
a. Since the industry is perfectly competitive, price and quantity are at the socially efficient levels. b. The competitive price is higher and quantity lower than the socially efficient point. c. The competitive price is higher and quantity higher than the socially efficient point. d. The competitive price is lower and quantity higher than the socially efficient point.
An important feature of representative democracy is the incentive and political power it offers participants to employ legislation to increase their wealth, either through direct transfers or through favorable public expenditures and regulations. Such benefits are called ________ , and the activity that interest groups undertake to elicit these special favors is called ________
a. taxes; tax-seeking b. dividends; portfolio management c. rents; rent-seeking d. interest; investment