The equation for determining real GDP for year X is:

Government failure occurs when

a. intervention by the government in the market fails to provide the socially optimal quantity of goods produced b. the government fails to intervene in a market that has sizable externalities c. the government fails to protect the free market and is forced to nationalize d. the government must intervene in a market to provide the socially optimal quantity of goods e. the government imposes a tax when it should have used an obligatory control

The model predicting victory in a two-person race for the candidate closer to occupying the center of the voter distribution is built on the assumption that

A) people always vote for the Democratic candidate if they are Democrats and for the Republican candidate if they are Republicans. B) people vote for the candidate who comes closer to matching their own views. C) most people don't vote unless the election is predicted to be close. D) none of the above