As output rises,
A. both marginal revenue product and marginal physical product rise.
B. both marginal revenue product and marginal physical product fall.
C. marginal revenue product rises and marginal physical product falls.
D. marginal revenue product rises and marginal physical product rises.
B. both marginal revenue product and marginal physical product fall.
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The Friedman rule works because
A) it maximizes productivity. B) it eliminates over-consumption. C) it encourages people to hold the appropriate quantity of money. D) it can be implemented by the private sector.
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.