Which of the following represents the basic principle of public choice theory?
a. Politicians act consistently in the public's interest.
b. Politicians follow their own self-interest and seek to maximize their reelection chances, rather than promote the best interests of society.
c. Politicians act in the public interest once they are elected, but follow their own self-interest and seek to maximize their reelection chances during a political campaign.
d. None of the above answers are correct.
b
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Technological innovations are not necessarily major scientific breakthroughs
Indicate whether the statement is true or false
If the MPP of labor is 60 and the price of labor per period is $20, the MPP of machinery is 75 and the price of the machinery per period is $25, in order to achieve optimal input proportions the firm should use
a. more labor and less machinery. b. more machinery and less labor. c. more labor with the same amount of machinery. d. the current combination.
In Japan, the market value of the land is approximately four times that of all the land in the United States, even though Japan is only about the size of California. The most likely explanation for this fact is
a. greater demand for land in Japan relative to the supply than in the United States. b. land is very productive in Japan. c. land is not fixed in supply in the United States. d. Japanese workers are very productive.
Which of the following rates of growth in the money supply is likely to lead to the lowest level of inflation in the economy?
a. 1 percent per year b. 3 percent per year c. 5 percent per year d. 7 percent per year