An Extension of the Policy Principle Is That Rational Actors

question 48

Multiple Choice

An extension of the policy principle is that rational actors design institutions that help them bring about the outcomes they desire.How did the Three-Fifths Compromise bias outcomes, compared to the Northerners' preference on the issue of slavery and representation?

• A)Southern states were able to ensure that no more than three-fifths of all federal revenue came from trade tariffs.
• B)It ensured that three-fifths of all new territory acquired by the United States would allow slavery.
• C)States with relatively more slaves gained representation in Congress and thus were better able to protect the interests of slave owners.
• D)It ensured that a vote of three-fifths of the Senate would be required to shut off debate on legislation to restrict slavery.
• E)It guaranteed that enslaved persons would be able to cast votes that counted for 60 percent of the weight of a free person's vote in federal elections.

---

Definitions:

Marginal Utility

The additional satisfaction or benefit received by consuming one more unit of a good or service.

Budget Line

A representation of all possible combinations of two goods that an individual can afford given their income and the prices of the goods.

Income-Consumption Curve

A graphical representation showing how a consumer's optimal bundle of goods varies with changes in income.

Price Elasticity

A measure reflecting the impact of price variations on the demand for a particular product.