If a voter expects to have little effect on government choices, that voter's behavior will reflect
a. rational ignorance
b. a cyclical majority
c. rent seeking
d. vote trading
e. a zero-sum game
QUESTION 2In the long run, the economic profit of Hoot's Pump Chicken 'n' Ribs, a monopolistic competitor,
a. is not eliminated because competition is not perfect
b. is not eliminated because the demand curve slopes downward
c. is eliminated because of new firms entering the industry
d. is eliminated because of firms leaving the industry
e. is not eliminated because new firms cannot enter the industry
QUESTION 3Under representative democracy,
a. the median voter's preferences are always satisfied
b. citizens no longer have any influence since they do not vote on each issue
c. representatives may reflect the preferences of the median voter
d. less vote trading will occur than under direct voting
e. vote trading is impossible
QUESTION 4In the long run, Bubba's Baby Boutique, a monopolistically competitive firm,
a. earns zero normal profit but positive economic profit
b. earns normal profit but zero economic profit
c. earns normal and economic profit
d. earns zero normal and economic profit
e. might earn any level of economic profit; no level is guaranteed
QUESTION 5In a democratic society, the preferences of __________ will often dominate decisions made by direct majority voting.
a. elected government representatives
b. special interest groups
c. rent seekers
d. senior citizens
e. the median voter
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