The behavior of regulators when trying to win approval for their actions from their entire constituency is best described by the
A) capture hypothesis.
B) law of increasing social well-being.
C) share-the-gains, share-the-pains hypothesis.
D) marginal benefit pricing hypothesis.
C
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A publisher is deciding whether or not to invest in a new printer. The printer would cost $900, and would increase the cash flows in year 1 by $500 and in year 3 by $800 . Cash flows do not change in year 2 . If the interest rate is 12%, what is the present value of the cash flows from the investment?
a. $155.59 b. $1015.85 c. $1076.56 d. $346.78
Other things equal, a positive supply shock would
a. Lower the price level b. Increase real output c. Shift AD right d. Do a. and b. but not c.
In a moral hazard problem, the agent is unable to perfectly monitor the principal's behavior so the principal applies less effort than the agent considers desirable
a. True b. False Indicate whether the statement is true or false
If the sacrifice ratio is 2, reducing the inflation rate from 4 percent to 2 percent would
a. cost 1 percent of annual output. b. cost 4 percent of annual output. c. imply that unemployment would rise by 1%. d. imply that unemployment would rise by 4%.