One important difference between the political process and the market process is that
A) the political process results in collective actions that maximize economic surplus, while the market process may lead to efficiency losses.
B) the political process results in collective actions in which everyone is made better off, while the market process results in actions that favor some groups only.
C) the political process results in collective actions in which not everyone is required to participate, while in the market process individuals are obliged to participate.
D) the political process results in collective actions in which everyone is obliged to participate, while in the market process individuals are free to participate or not.
D
You might also like to view...
Marginal benefit curves slope
A) upward because of increasing opportunity cost. B) upward, but not because of increasing opportunity cost. C) downward because of increasing opportunity cost. D) downward, but not because of increasing opportunity cost.
Consider the following T-account for National City Bank:
Assets Liabilities Reserves $10,000 Deposits $100,000 Loans $90,000 If the required reserve ratio is lowered to 8 percent, how much can National City loan out? A) $10,000 B) $8,000 C) $2,000 D) $0