The No-Good Company produces goods that provide damages to society-at-large. If consumers of No-Good's products fail to take external benefits into account
A. the demand curve will be too far to the right.
B. the supply curve will be too far to the left.
C. the demand curve will be too far to the left.
D. the supply curve will be too far to the right.
Answer: D
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A solution to the budget-gaming problem is
a. Remove all kinks from the compensation schedule b. Use a straight line pay for performance function c. Do not base compensation on meeting a particular budget goal d. All of the above
The median voter model implies that: a. most voters will have about the same preferences for goods and services provided through government
b. a candidate may adopt more extreme views when seeking her party's nomination than during the general election. c. political voting will be as economically efficient as voting with dollars in competitive markets. d. none of the above