A Practical Approach to Microeconomic Policy Will Need to Take

question 41

Multiple Choice

A practical approach to microeconomic policy will need to take a realistic view of the specific strengths and weaknesses of markets and _______.

• A) rational ignorance that encourages a preference for uninformed voting
• B) the difficulties that arise when electors have three or more ballet choices.
• C) lobbying efforts that encourage pork-barrel spending
• D) the specific strengths and weaknesses of government

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Definitions:

Reduce Uncertainty

Strategies or actions taken to minimize the unpredictability or variability in outcomes.

Leasing

A financial arrangement where a lessee pays the lessor for the use of an asset for a specified period of time, without owning the asset.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal annual amounts.

Net Advantage

The total benefits received minus the costs incurred from an investment or business decision.