Which one of the following is a major difference between market and collective action through government?
a. Individuals are motivated by personal interests when making market choices, but they will be motivated primarily by the public interest when making collective choices.
b. Competitive behavior is present when decisions are made in the marketplace, but competition is absent when choices are made collectively.
c. Scarcity constrains output when decisions are made in the market sector, but scarcity is absent when goods are provided by the government.
d. In the market sector, there is generally a one-to-one link between payment and consumption; this link is often absent in the government sector.
D
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The goal of maximum sustainable employment is roughly equivalent to achieving ________
A) the natural rate of unemployment B) an inflation target that is slightly above zero C) the elimination of frictional and structural unemployment D) all of the above E) none of the above
A leftward shift of the demand curve results in: a. increase in equilibrium price
b. increase in quantity. c. decrease in both equilibrium price and quantity. d. decrease in quantity and an indeterminate equilibrium price.