One Important Difference Between the Political Process and the Market

question 97

Multiple Choice

One important difference between the political process and the market process is that

• A)the political process results in collective actions in which not everyone is required to participate, while in the market process individuals are obliged to participate.
• B)the political process results in collective actions in which everyone is obliged to participate, while in the market process individuals are free to participate or not.
• C)the political process results in collective actions that maximize economic surplus, while the market process may lead to efficiency losses.
• D)the political process results in collective actions in which everyone is made better off, while the market process results in actions that favor some groups only.

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Definitions:

Matched Pairs

A study design where subjects are paired based on certain characteristics, and one from each pair is assigned to the treatment group and the other to the control.

Distribution

The way in which something is shared out among a group or spread over an area.

Sample Size

The number of observations or replicates included in a statistical sample.

T Distribution

A probability distribution that is used in hypothesis testing for small sample sizes, when the population standard deviation is unknown.