Using the Figure Above,suppose There Are Two Political Parties,the Hawks

question 148

Multiple Choice

Using the figure above,suppose there are two political parties,the Hawks and the Doves,which agree on all issues except for the quantity of defense satellites.The Hawks want 300 satellites and the Doves want 100 satellites.The voters are well informed and know what is best for them.The parties run a voter survey and discover the marginal benefit curve (MB) .They also know the marginal cost curve (MC) .What quantity of satellites will most likely result from this political process?

• A) 200, because unless each party proposes 200 satellites, the other party can beat it in an election
• B) 300, because the Hawks are more likely to win
• C) 100, because the Doves are more likely to win
• D) 200, because the parties will strike a deal: each will agree to give up 100 satellites
• E) Zero, because given the marginal benefit and the marginal cost of satellites, none should be provided.

---

Definitions:

Accomplished

Having successfully completed or achieved a goal or objective; skilled and capable.

Received

Pertains to goods, services, or payments that have been accepted or taken in by an individual or organization.

Bought

The past tense of buy, referring to the acquisition of goods or services in exchange for money.

Efficiency

Efficiency refers to the ability to accomplish a task or produce a desired outcome with the minimum amount of waste, expense, or unnecessary effort.