In a Majority-Rules Democracy, Economic Thinking Suggests That We Should

question 41

Multiple Choice

In a majority-rules democracy, economic thinking suggests that we should expect to see institutions and policies that

• A) are short-sighted.
• B) take the long view, sacrificing current benefits to get larger future benefits.
• C) benefit the common citizen at the expense of narrow special interest groups which, after all, have fewer voters.
• D) are biased against income transfer programs, regardless of constitutional limits.

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the amount of it that consumers are willing and able to purchase at various prices.

Quantity Demanded

The volume of a good or service that purchasers have the willingness and financial ability to acquire at a certain price.

Price

The sum in money expected, obligated, or dispensed as compensation for something.

Demand Curve

A chart that illustrates the connection between a product's price and the amount of the product buyers are prepared to buy.