List the five categories of federal government expenditures
What will be an ideal response?
1. Defense spending
2. Transfer payments
3. Grants to state and local governments
4. Interest payments
5. Other expenditures
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Which of the following statements concerning bank regulation in the United States is TRUE?
A) The Office of the Comptroller of the Currency has the primary responsibility for state banks that are members of the Federal Reserve System. B) The Federal Reserve and the state banking authorities jointly have responsibility for the state banks that are members of the Federal Reserve System. C) The Office of the Comptroller of the Currency has sole regulatory responsibility over bank holding companies. D) The state banking authorities have sole regulatory responsibility for all state banks.
All of the following are tools of fiscal policy except one. Which is the exception?
a. Taxes b. Transfer payments c. Interest rates d. Government purchases of goods e. Government purchases of services
Pollution charges will be efficient if
a. the charge is just equal to the cost borne by others from the pollution. b. the charge is greater than the cost borne by others from the pollution. c. the charge is less than the cost borne by others from the pollution. d. none of the above.
A manager of a firm with market power faces the marginal revenue product and average revenue product curves shown below. The firm incurs weekly fixed costs of $1,800. The firm employs a single variable input, labor, which costs $600 per worker each week.
Given the above, suppose the weekly wage rate increases to $1,400 per worker. The firm would hire ________ workers and earn a profit of ________ per week.
A. 6 ; $6,000 B. 6 ; $4,800 C. 6 ; $8,400 D. 0 ; -$1,800 E. 6 ; -$2,400