In which case is the political process most likely to result in the acceptance of efficient projects and rejection of inefficient projects?
a. The benefits are highly concentrated, and costs are widespread among voters.
b. The costs are highly concentrated, and the benefits are widespread among voters.
c. Both the benefits and costs are widespread among voters.
d. The benefits accrue primarily in the future, while the costs are more visible during the current period.
C
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Oligopolies are difficult to analyze because
A) oligopolies are a recent development so economists have not had time to develop models. B) demand and cost curves do not exist for these types of industries. C) the firms are so large. D) how firms respond to a price change by a rival is uncertain.
Starting with a situation where there is a substantial budget deficit, when tax revenues grow faster than federal expenditures, the government will experience:
a. a balanced budget. b. an increasing national debt. c. a declining budget surplus. d. a declining budget deficit. e. an increasing budget deficit.