At the most basic level, the distinguishing characteristic of government that makes it different from private firms is
a. the difference in incentive structure motivating economic activity.
b. its ability to direct resources in a manner that is more economically efficient.
c. its ability to produce goods and services that people value.
d. its ability to use coercive force against people to modify their behavior or force them to pay for a good or service whether they benefit from it or not.
D
You might also like to view...
The productive resource that organizes labor, land, and capital is
A) capital. B) financial capital. C) human capital. D) government. E) entrepreneurshi
Which of the following are reasons why U.S. residents supply dollars to the foreign exchange market?
i. to buy U.S. exports ii. to buy foreign real estate iii. to buy foreign bonds A) i only B) ii only C) iii only D) i and iii E) ii and iii
If the intersection of the IS curve with the horizontal axis comes at a level of output below the natural level of output, lowering interest rate to zero will
A) bring economy back to natural output. B) not bring the economy back to natural output. C) will have inflationary effects on the economy. D) will cause saving rates to increase.
In the long run, monopolistically competitive firms produce where demand equals average total cost
a. True b. False Indicate whether the statement is true or false