In a sporting goods store, you can buy the equipment you want and forgo the rest. But in an election you "buy" the entire range of the candidate's positions, including some you may not agree with. This difference:
A. reflects limited and bundled choices in the public sector.
B. describes the paradox of voting.
C. describes the principal-agent problem in the public sector.
D. creates bureaucratic inefficiency in the public sector.
Answer: A
Economics
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According to the factor price equalization theorem, if country A is labor abundant, then if country A initiates international trade
A) wages and rents should fall in A. B) rents and rents should rise in A. C) wages should rise and rents should fall in A. D) wages should fall and rents should rise in A.
Economics
If hiring the 4th worker increases total product by 50 units and the price of each unit is $15,
a. the firm should not hire the 4th worker as MB
Economics