When majority rule voting is used to determine whether to purchase a public good,
A) the efficient outcome is assured.
B) the median voter gets her way.
C) the sum of the marginal benefits must equal marginal cost.
D) the marginal benefit of the good to the median voter equals the good's marginal cost.
B
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Money is "created" when
A. a depositor deposits money at the bank. B. people use money to pay for stuff they buy from one another. C. someone lends money to a friend or a family member. D. a bank grants a loan to a customer.
The main policy-making organization of the Federal Reserve System is the ________
A) U.S. Mint B) U.S. Treasury C) Joint Congressional Committee on Monetary Policy D) Federal Open Market Committee
Suppose that John Maestro, the owner of a tennis shop in Evanston, Illinois, decides to purchase a new machine that restrings tennis rackets in half the time it formerly took. The new technology costs $1,000 . and the MPC is 0.80 . How much real GDP will be generated from John's $1,000 initial investment?
a. $200 b. $500 c. $1,000 d. $2,000 e. $5,000
The Federal Reserve
a. is responsible for conducting the nation's monetary policy, and it plays a role in regulating banks. b. is responsible for conducing the nation's monetary policy, but it plays no role in regulating banks. c. is not responsible for conducting the nation's monetary policy, and it plays a role in regulating banks. d. is not responsible for conducing the nation's monetary policy, and it plays no role in regulating banks.