Two candidates are running for election as mayors of New York City that was recently impacted by Superstorm Sandy. In their election platforms, both candidates supported spending very similar amounts on hurricane protection
This similarity is most likely the result of A) both candidates necessarily having the same preferences towards risk and protection.
B) the Principle of Minimum Differentiation.
C) both the candidates realize that hurricane protection is a public good.
D) politicians only take efficiency into account and hence all candidates will suggest the efficient outcome.
B
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When an economy faces an inflationary gap, an appropriate fiscal policy is to
A) increase aggregate demand. B) decrease government expenditure. C) decrease the quantity of money. D) decrease taxes. E) increase the quantity of money.
The mercantilist economic doctrine was widely followed from the sixteenth to the eighteenth century in Europe
Mercantilists advocated the use of tariffs to restrict trade as they believed that countries that export more than they import will increase wealth. What could be the problem with such an economic policy?