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14. In some cases, like the case of well-organized special interests or pork-barrel legislation, a democratic government may seek to enact economically unwise projects or programs. True or False. 

a. True

b. False

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2 Nov 2020

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Related questions

14. As a reflection of this interest of legislators in their own districts, the U.S. government has typically spread out it's spending on military bases and weapons programs to congressional districts all across the country. This is meant to avoid the pitfalls of logrolling and pork-barrel spending. True or False.

a. True

b. False

1. If patent owners are compensated with monopoly profits from transferred consumer surplus, consumers will be compensated by greater product variety and technological innovation, while the alternative is lower prices, fewer new products, and much less research and development. a. True b. False

2. Greater access to foreign direct investment among developing nations has increased the costs of obtaining investment capital for domestic projects that promote economic growth. a. True b. False

3. Global public goods such as health care are everywhere and are easy to identify without much disagreement. a. True b. False

4. The marginal benefits and costs of pollution abatement are commonly agreed upon, thus no objective analysis that determines the exact costs or benefits should be needed in order to determine the optimal level of social welfare. a. True b. False

5. Portfolio capital inflows can be reversed quickly and cause a financial crisis to worsen. a. True b. False

6. Developing a framework for protecting ownership rights to intellectual property has become a major issue in multilateral trade discussions. a. True b. False

7. A country with poorly developed financial markets may find that controlling short-term capital inflows to be beneficial, but capital controls in countries with highly developed financial markets are likely to be inefficient policies. a. True b. False

8. Ex ante conditionality in which IMF loan conditions are publicly known in advance may reduce asymmetric information problems associated with member nations who seek assistance. a. True b. False

9. There is an incentive to be a free rider when it comes to public goods, thus some type of coercive tax system is needed in order to fund public goods. a. True b. False

10. Adverse selection and herding behavior among lenders can result in many poor investments that go bad. a. True b. False

I have the following questions for my Managerial Economics course.

1.

A principal-agent problems occur when managerial decisions are not consistent with the firm's shareholders' interests.

A) True
B) False

2.

A firm making more than a normal profit may still be experiencing an economic loss.

A) True
B) False

3.

An inferior good is a good whose demand decreases as its prices decreases.

A) True
B) False

4.

Assuming that crude oil is an input to automobile tires as well as to gasoline, a reduction in the tariff on imported crude oil would likely result in an increase in the number of tires sold but tire prices may increase or decrease.

A) True
B) False

5.

Other things remaining unchanged, advertisement would likely make demand for a good more price elastic.

A) True
B) False

6.

The cross price elasticity demand for a good with respect to the price of a complementary good is negative.

A) True
B) False

7.

When the marginal product of labor is smaller than its average product, marginal cost will be smaller than average variable cost.

A) True
B) False

8.

With capital measured along the vertical axis and labor along the horizontal axis the slope of an isoquant is equal to the ratio between the price of capital over the price of labor.

A) True
B) False

9.

If the ratio between the price of labor and the price of capital (w/r) is smaller than the ration between the marginal product of labor and the marginal product of capital, the firm should hire more capital.

A) True
B) False

10.

Normally the ratio between the price of a variable input and the marginal product of that input is equal to marginal cost.

A) True
B) False

11.

When labor is a variable input the product of wage and marginal product of labor is equal to the profit-maximizing price.

A) True
B) False

12.

If the price falls below the average total cost the firm may not shut down in the short run.

A) True
B) False

13.

When a perfectly competitive firm is producing at its profit maximizing level of output, its MR is equal to price and its MC while it may or may not be making an economic profit.

A) True
B) False

14.

The price a profit maximizing monopoly charges is always greater than its marginal cost as well as it MR while it may not be greater than its ATC.

A) True
B) False

15.

As new firms enter a monopolistically competitive market, the demand faced by each competing firm becomes more inelastic.

A) True
B) False

16.

The long-run equilibrium of a monopoly is characterized by its price being equal to its MR but always greater than its ATC.

A) True
B) False

17.

A monopolistically competitive firm sets its price equal to its MR, while keeping it above MC.

A) True
B) False

18.

We say that the long-run equilibrium of a monopolistically competitive firm reflects excess capacity because its MC is not equal to its ATC.

A) True
B) False

19.

In a duopoly with a zero marginal cost, according to the Cournot model, at equilibrium the sum of the two firms' output would be more than 50 percent of the market demand at a zero price.

A) True
B) False

20.

In the kinked demand curve model it is assumed that the demand faced by an oligopoly is less elastic when it lowers the price but more elastic when it raises the price.

A) True
B) False

21.

A distinguishing characteristic of monopolistically competitive market is price discrimination.

A) True
B) False

22.

The general explanation for the relative price stability in an oligopolistic market is the existence of some degree of decision interdependency among the firms in the market.

A) True
B) False

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