Public choice analysis indicates most income transfers will be directed toward the poor. O rent-seeking activities will improve the efficiency of resource allocation and promote economic growth. O rent seeking will be less attractive if the nation's legal (or constitutional) structure makes it difficult to use the political process to take the property or income of others. O politicians will consistently oppose programs favored by rent seekers if those programs reduce the welfare of society.

Which of the following is NOT a common criticism of the focus on economic efficiency as a measure of welfare? Economic efficiency is based only on results and not on process. O The assumption that willingness to pay measures marginal benefit ignores ability to pay. OA situation can be economically efficient but also considered to be unfair. OUsing monetary values for measurements ignores feelings and perceptions.

Mo is smarter than Larry; that is, he has greater ability. How is Mo's demand for schooling related to Larry's demand for schooling? O Mo's schooling demand curve lies to the right of Larry's schooling demand curve. O They have the same schooling demand curve, but Mo chooses more schooling along that curve. O Mo's schooling demand curve lies to the left of Larry's schooling demand curve. Mo's schooling demand curve is Larry's schooling demand curve plus the ability bias. Christy will live and work forever, A graduate fellowship waives her tuition. Christy maximizes her wealth by going to graduate school for two years. When she leaves graduate school at s-18, her wage equals the present value of the annual wage gain over her whole career. O the interest rate. O schooling demand O the tuition that other students pay. If everyone is identical in terms of preferences, ability, and interest rates, then more-educated workers than less-educated workers. are no better off O work shorter…

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