The Information-Aggregation Problem Faced by the Top Layers of Government

question 57

Multiple Choice

The information-aggregation problem faced by the top layers of government can make it hard for the high-level officials to:

• A) Discern the prices of specific goods and services in the economy
• B) Comprehensively assess the marginal costs and benefits of specific programs
• C) Monitor the incomes of individual firms and households
• D) Estimate the total amount of spending incurred by the government

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Definitions:

Neural Communication

Neural communication involves the transmission of information between neurons through electrical signals and chemical neurotransmitters across synapses.

Transmission

The process by which information, matter, or energy is sent or conveyed from one place or part to another.

Neurotransmitters

Chemicals that transmit signals across a synapse from one neuron to another in the brain.

Broca's Aphasia

A condition characterized by the partial loss of the ability to produce language due to damage in a specific area of the brain.