Economic growth policies always involve
a. trade-offs
b. lower taxes
c. higher government spending
d. more investment
e. more transfer payments
A
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When economists refer to the role of money as a store of value, they mean that
A) money never loses its value, unlike other assets. B) money allows value to be stored easily. C) the value of money falls only when the quantity of money in circulation falls. D) the value of money falls only when the quantity of money in circulation rises.
Felix always consumes exactly four cookies with a glass of milk. Felix's indifference curves for cookies and milk would be:
A. linear. B. L-shaped. C. convex. D. positively-sloped.
Suppose that there are two types of houses for sale: those with solid foundations and those with cracked foundations. In all other respects, the two types of houses are identical. Houses with solid foundations are worth $200,000, while those with cracked foundations are worth $200,000 minus the $20,000 to fix the crack, or $180,000. Sellers know which type of house they have, but buyers cannot detect whether the foundation has a crack. Suppose that 80 percent of the houses for sale have a solid foundation and 20 percent of the houses for sale have a cracked foundation. If buyers are risk-neutral and know the that 80 percent of the houses for sale have a solid foundation while 20 percent have a cracked foundation, then the owners of houses with a solid foundation will find that:
A. potential buyers are offering $180,000. B. potential buyers are offering $200,000. C. it is not worthwhile to sell their houses. D. potential buyers are offering more than $200,000.
Which statement is false?
A. The poverty rate was lower in 2009 than it was in 2000. B. The poverty rate for children under 18 is higher than the poverty rate for people over 65. C. The poverty rate today is higher than it was in 2006. D. The poverty rate for Hispanics is three times that of whites.