The fastest growing category of government expenditure is
A) grants to state and local governments.
B) defense spending.
C) transfer payments.
D) government purchases.
Answer: C
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When government intervenes in the production process because external benefits exist, it typically attempts
A) to impose a tax on each unit produced. B) to shift the industry's demand curve to the left. C) to shift the industry's demand curve to the right. D) to shift the industry's supply curve to the left.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point B to Point C so that an additional 20 OLED televisions could be produced, production of LCD televisions would have to be reduced by
A. more than 30. B. exactly 60. C. fewer than 30. D. exactly 30.
Some economists prefer to use the term business fluctuations rather than business cycles to describe the historical growth record in the United States because:
A. Cycles include a trough phase while fluctuations do not B. Cycles imply regularity while fluctuations do not C. Fluctuations include an expansion phase while cycles do not D. Fluctuations are relatively predictable events
To face scarcity means individuals
A) choose. B) economize. C) sacrifice some plans over others. D) all of the above.