The results of majority voting sometimes, but not always, agree with the results of benefit-cost analysis.
a. True
b. False
Indicate whether the statement is true or false
QUESTION 2Which of the following is the best example of a quota?
a. a tax placed on all small cars sold in the domestic market
b. a limit imposed on the number of men's suits that can be imported from a foreign country
c. a subsidy from the U.S. government to domestic manufacturers of men's suits so they can compete more effectively with foreign producers of men's suits
d. a 100-per-car fee imposed on all small imported cars
QUESTION 3Which one of the following will shift the consumption function downward?
a. An increase in disposable income.
b. A decrease in disposable income.
c. Legislation making credit harder to obtain.
d. Lower tax rates.
e. A technological breakthrough.
QUESTION 4An import quota on a product protects domestic industries by:
a. reducing the foreign supply to the domestic market and, thereby, raising the domestic price.
b. increasing the foreign supply to the domestic market and, thereby, lowering the domestic price.
c. increasing the domestic demand for the product and, thereby, increasing its price.
d. providing the incentive for domestic producers to improve the efficiency of their operation and, thereby, reduce their per-unit costs of production.
QUESTION 5According to the public choice theory, voters who choose to remain uninformed about the issues are behaving irrationally.
a. True
b. False
Indicate whether the statement is true or false
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