Public choice analysis indicates
a. most income transfers will be directed toward the poor.
b. rent-seeking activities will improve the efficiency of resource allocation and promote economic growth.
c. rent seeking will be less attractive if the nation's legal (or constitutional) structure makes it difficult to use the political process to take the property or income of others.
d. politicians will consistently oppose programs favored by rent seekers if those programs reduce the welfare of society.
C
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A defendant believes there is a 40 percent chance that the plaintiff will win $1,000,000 and a 60 percent chance that the plaintiff will lose and be awarded nothing (zero). The plaintiff believes that there is a 60 percent chance that they will win $1,000,000 and a 40 percent chance that they will be awarded nothing (zero). The plaintiff's litigation cost is $300,000 and the defendant's
litigation cost is $300,000. Which of the following statements is true? A) The defendant would be willing to pay up to $800,000 to settle. B) The plaintiff would be will to accept any amount greater than $200,000 to settle. C) The plaintiff would be will to accept any amount greater than $300,000 to settle. D) There is no economic incentive for either party to settle.
If the interest rate increases, there is a(n)
A) increase in the demand for money. B) decrease in the demand for money. C) increase in the quantity of money demanded. D) decrease in the quantity of money demanded.
Discuss the components of GDP using the expenditure approach
How do changes in open market operations alter the monetary base, and how do changes in the monetary base translate to changes in the money supply?