Suppose That a Federal Election Is Coming Soon and the Government

question 85

Multiple Choice

Suppose that a federal election is coming soon and the government has been running persistent large budget deficits.Constitutional economists would most likely urge ___________________ in order to eliminate future budget deficits.

• A) voters to vote for liberal candidates
• B) voters to vote for conservative candidates
• C) Congress to pass a law constraining them to spend no more than what they are receiving in tax revenues
• D) Congress to remove all constraints on spending and taxes.

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Definitions:

Marginal Cost

The cost increase brought about by the production of an extra unit of a product or service.

Pure Monopolist

A market situation where a single company is the sole producer and seller of a product or service, without any close substitutes.

Nondiscriminating Monopolist

Refers to a monopolist who charges all consumers the same price for its product or service, as opposed to price discrimination practices.

Pure Monopolist

A market structure where a single seller controls the entire supply of a product or service, and no close substitutes exist.