Suppose a vote was taken in a small town of 11 people to determine how much of the budget should go toward education spending. Five individuals want 10 percent, five individuals want 80 percent and one person wants 25 percent. According to the median-voter theorem, the chosen amount to spend on education will be ______ of the budget.
A. 10 %
B. 80 %
C. 45 %
D. 25%
D. 25%
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Suppose the overall MPC is 0.9. If a $2 billion increase in imports to the United States will lead to a $10 billion decrease in GDP, the value of the marginal propensity to import must be
A) 0.1. B) 0.2. C) 0.5. D) 0.8.
Producers' political power and strong stake in the regulatory outcome lead them, in effect, to control the regulating agency and prevail on it to serve producer interests is called the:
a. capture theory of regulation b. tying contract c. exclusive dealing d. interlocking directorate
The slower the marginal utility declines as more of a good is consumed the:
A. larger the opportunity cost of the good. B. smaller the elasticity of demand. C. smaller the opportunity cost of the good. D. greater the elasticity of demand.
In effect, a tax increase has the same effect as a _____.
Fill in the blank(s) with the appropriate word(s).