The market mechanism leads to underproduction of public goods because the supply of public goods is hidden.

Under a fixed exchange rate system, if the inflation rate of the United States is less than the inflation rate of other nations, the

A) United States will develop a trade surplus. B) dollar will appreciate. C) United States will develop a trade deficit. D) dollar will depreciate.

The political process can impede redistribution goals because _____

a. there are more stingy voters than generous voters b. there are more middle class voters than poor voters c. there are more dumb voters than smart voters d. there are more middle class politicians than poor politicians