When people "vote with their feet" they _____
a. move to the governmental jurisdiction with the lowest taxes
b. move to the governmental jurisdiction that have the bundle of government goods and services closest to their preferred level
c. move to the governmental jurisdiction with the best schools
d. move to democracies from dictatorships
b
You might also like to view...
The circular flow diagram shows
A) how nominal GDP is distinct from real GDP. B) how the prices of factors are determined. C) the effects of inflation in a simple economy. D) the flows between different sectors of the economy.
Suppose the demand for Pepsi-Cola is qp = 54 - 2pp + 1pc. The demand for Coca-Cola is qc = 54 - 2pc + 1pp. Each firm faces a constant marginal cost of zero. Determine the Bertrand equilibrium prices. What happens to the Bertrand equilibrium prices and profits if increased differentiation causes the demand for Pepsi-Cola to become qp = 104 - 2pp + 1pc while the demand for Coca-Cola remains
unchanged? What will be an ideal response?