Explain two ways inefficiencies associated with majority voting may get resolved
Please provide the best answer for the statement.
First, special interest groups can form and lobby for funding of a public good that has net benefits for society. Second, political logrolling can be used. In this case, votes are traded to obtain a favorable outcome on decisions that might otherwise be adverse. If the favorable outcome results in funding for a public good that has net benefits for society, then the economic inefficiencies from majority voting will be overcome.
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Suppose on any given day there is an excess demand of reserves in the federal funds market
If the Federal Reserve wishes to keep the federal funds rate at its current level, then the appropriate action for the Federal Reserve to take is a ________ open market ________, everything else held constant. A) defensive; sale B) defensive; purchase C) dynamic; sale D) dynamic; purchase
If a good has “snob appeal,” consumers may purchase less when the price falls.
Answer the following statement true (T) or false (F)