Majority voting fails to incorporate the strength of the preferences of individual voters, and therefore:
A. Reduces the power of the median voter
B. Is the primary reason for public sector failure
C. May produce economically inefficient outcomes
D. Creates the opportunity for the fallacy of limited decisions
C. May produce economically inefficient outcomes
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Which of the following describes monopolistic competition?
A) homogeneous products B) P = MR = MC C) Advertising plays a key role. D) There is only one seller in the industry.
Which of the following describes the infant industry argument for protectionism?
A) An industry must be protected in its early stages of development so that firms can compete with government-subsidized foreign competition. B) Some strategic industries must be protected to ensure adequate supplies of resources needed for national defense in emergencies. C) Domestic producers in high-wage countries must be protected from foreign producers in low-wage countries to produce a level playing field. D) Domestic producers require time to gain experience and lower their unit costs; this will allow these producers to compete successfully in international markets.