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31) The Road Runner Club contributes money to Senator Sly's reelection campaign fund, and Senator Sly helps pass legislation to add more jogging paths across

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31) The Road Runner Club contributes money to Senator Sly's reelection campaign fund, and Senator Sly helps pass legislation to add more jogging paths across the state. From this we can definitively conclude A) nothing; the Road Runner Club may have donated to Senator Sly because he already supported the jogging paths. B) that logrolling has occurred. C) that political corruption has occurred. D) that a principal-agent problem has occurred. 32) "Unfunded liability" refers to a government commitment to A) put money in specific mutual funds in order to vouch for the funds' liabilities. B) support the retirement funds of businesses that have gone bankrupt. C) spend in the future without also committing to collect enough tax money to pay for it. D) not pay the government bonds that are coming due. 33) In corporations, owners are and managers are A) agents; employees B) stockholders; bondholders C) principals; agents D) agents; principals 34) The government would be running a budget surplus if A) it imported less from abroad than it exported. B) government spending were lower than consumer spending. C) tax revenues were less than government spending. D) government spent less than it collected in taxes. 35) When the price of candy bars decreased from 50.55 to $0.45, the quantity demanded changed from 19,000 per day to 21,000 per day. In this price range, the price-elasticity coefficient (based on the midpoint formula) for candy bars is A) 0.2. B) 1. C) 2 . D) 0.5. 36) Suppose that a 10 percent increase in the price of normal good Y causes a 20 percent increase in the quantity demanded of normal good X. The coefficient of cross elasticity of demand is A) negative, and therefore these goods are substitutes. B) negative, and therefore these goods are complements. C) positive, and therefore these goods are complements. D) positive, and therefore these goods are substitutes

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