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Suppose $1 billion is available in the budget and Congress is considering allocating the funds to ...

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Suppose $1 billion is available in the budget and Congress is considering allocating the funds to ...

Question 1.

In general, the supply curve for a natural resource

▸

is vertical.

▸

slopes upward.

▸

is horizontal.

▸

slopes downward to reflect decreasing available quantities over time.

Question 2.

Suppose $1 billion is available in the budget and Congress is considering allocating the funds to one of the following three alternatives:

a.	subsidies for education

b.	research on Alzheimer's

c.	increased border security

If voters prefer a to b and b to c, then if preferences are transitive,

▸

they should be indifferent between a and c.

▸

they should prefer a to c.

▸

they should prefer c to a.

▸

it is not always possible to rank voters' preferences between a and c.

Textbook

InMicro

Edition: 1^st

Authors: Hubbard, O'Brien

Read 136 times

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