The government redistributes income to the poor, primarily through
a. progressive taxes.
b. transfer payments.
c. government purchases.
d. both a and b.
d
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Which of the following is a TRUE statement concerning economic growth?
A) Changes in per capita nominal GDP are used to measure economic growth, but there are serious problems concerning the desirability of using figures that do not account for pollution and urban sprawl. B) Changes in per capita real GDP are used to measure economic growth because inflation and population growth can distort nominal GDP figures or total GDP figures. C) Changes in per capita nominal GDP are used to measure economic growth because population growth can distort the figures and we want to use the nominal amounts since that is what people identify with. D) Changes in per capita real GDP are used to measure economic growth because this accurately measures all the differences in living standards across countries.
When the price of a good increases,
A) supply increases. B) quantity supplied increases. C) supply decreases. D) quantity supplied decreases.
Refer to the data provided in Table 11.2 below to answer the following question(s). Table 11.2 
Refer to Table 11.2. If the interest rate is 11%, then the farmer will only
A. buy the tractor and the irrigation system. B. buy the bookkeeping software and the grain storage tanks. C. buy the bookkeeping software. D. buy the tractor.
The expected level of shirking or opportunistic behavior by an agent:
A. is always zero. B. is always less than zero. C. can always be determined accurately. D. is always greater than zero.