Economists Andrei Shleifer and Robert Vishny Argue That Governments,like Consumers

question 46

Multiple Choice

Economists Andrei Shleifer and Robert Vishny argue that governments,like consumers and producers,are rational and self-interested; they care about staying in power and maintaining their bureaucratic empires (what the economists call the "grabbing hand") more than improving social welfare (the "helping hand") .The "grabbing hand" theory of government provides an example of ________.

• A) the underground economy
• B) command-and-control regulation
• C) government failures
• D) none of the above

Understand how different factors of production are not equally suited for producing all types of goods and the implications of this for the economy.

Understand the concept of economic growth as indicated by shifts in the production possibilities frontier.

Identify and explain the concept of opportunity cost and how it varies with different production choices.

Recognize the implications of producing at various points on or inside the production possibility frontier (PPF) in terms of efficiency, unemployment, and resource utilization.

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