According to the economic theory of government, policies in a democracy will favor
A) the interests of many small minorities.
B) the public interest.
C) the real interests of the majority.
D) whatever the majority thinks it wants even when this is not in the majority's real long run interest.
Question 2
At a Mufflers-R-Us repair shop customers have the opportunity to wait in a room with chairs, a television, magazines, coffee and donuts. The economic way of thinking suggests the muffler shop is
A) selling mufflers below cost.
B) selling the additional goods and services below cost.
C) attempting to increase its total profit
D) engaging in unfair trade practice because it provides the goods and services free of charge.
E) almost certainly doing none of the above.