During the Iraq War, the U.S. government continued to borrow funds and yet the interest rate was steady or slightly declined. What could explain this?
A) The U.S. crowded out private saving.
B) The U.S. crowded out private borrowing.
C) The supply of loanable funds increased by a greater proportion than demand increased.
D) The supply of loanable funds increased by a smaller proportion than demand increased.
C
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The army is more likely than a business firm to assign a highly-skilled person to a job requiring little skill because the people who assign military personnel
A) are generally guided by the public interest rather than private interest. B) incur little cost from misallocating personnel. C) must consider the welfare of the whole rather than the profitability of the enterprise. D) work for the government, where there is less demand for skilled personnel.
Kenneth Arrow proved that the voting system that satisfied all of the properties of his "perfect" voting system was
a. one in which a single person (a "dictator") imposes his preferences on everyone else. b. pairwise majority voting. c. majority voting that is not pairwise. d. None of the above is correct. Arrow proved that no voting system can satisfy all of the properties of his "perfect" system.