When the tax to fund a government project is allocated among voters in proportion to the benefits they receive from the project,
a. productive (efficient) projects will tend to be opposed by a majority of voters.
b. counterproductive (inefficient) projects will often be favored by a majority of voters.
c. projects that are productive (efficient) will tend to be favored by an overwhelming majority of voters.
d. democratic political decision making can be expected to work poorly.
C
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During the antebellum period, the U.S. used more economic output and resources than were domestically available during expansions and less during contractions. International trade assisted during these cyclical times
Indicate whether the statement is true or false
A perfectly competitive firm discovers that its MRPL divided by the wage equals 1.25. The firm should
A) check the MRP of the other inputs and divide them by their prices. If they are all equal to 1.25 it is maximizing profits. B) hire more labor. C) purchase more capital. D) try to pay a lower wage rate.