How does corruption contribute to government failure?
Please provide the best answer for the statement.
Government resources and actions also can be misdirected and inefficiently allocated through political corruption, where government officials use their offices for personal gain rather than for public good or where the benefits justify the costs. Political decisions can be influenced by bribery or other types of payments, such as asking people for contributions that are not really voluntary.
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Standard economic theory asserts that sunk costs are irrelevant in making economic decisions, yet studies conducted by behavioral economists reveal that sunk costs often affect economic decisions. Which of the following could explain this observation?
A) Even though sunk costs cannot be recovered, it has been incurred and therefore should be treated as part of the product's value. B) People measure the value of a good in terms of its purchase price. C) Sunk costs have a higher opportunity cost than costs that can be recovered. D) If consumers maximize their utility, it makes sense to consider the full purchase price of a product in their consumption decisions.
An increase in the quantity of money supplied shifts the money supply curve to the ________ and the LM curve to the ________, everything else held constant
A) right; left B) right; right C) left; left D) left; right
The most important source of funding for Medicare is
a. the federal income tax. b. premiums paid by elders and deducted from their monthly Social Security checks. c. a 2.9 percent payroll tax paid by all workers, regardless of their age. d. proceeds from the Medicare Trust Fund. e. a tax on the health insurance premiums pay by all group plans.
The price level effects consumer spending through changes in real
a. disposable income. b. interest rates. c. wealth. d. GDP.