In a situation in which internal costs differ from social costs, we say that there exists a(n)
A) welfare loss.
B) welfare benefit.
C) internality.
D) externality.
Answer: D
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Deflation financially ________ borrowers of money and financially ________ lenders of money
A) benefits; benefits B) benefits; harms C) harms; benefits D) harms; harms
Which of the following are not considered part of government purchases?
A) a tank purchased by the federal government B) teachers' salaries paid by a local government C) a bridge purchased by the state government D) welfare benefits
Why doesn't the process of electing officials prevent rent-seeking and corruption?
A. The cost of gathering such information is often too costly. B. Those who win special favors through this behavior simply pay others off to keep them from whistleblowing. C. It actually does prevent this behavior in the real world. D. People are generally disinterested in preventing both of these in government.
In terms of timing, the 2003 tax rebate
A. was extremely poor in that it rapidly overheated the economy at the wrong time. B. was perfect because it unambiguously ended a recession. C. was enacted and implemented in a relatively short period of time. D. clearly arrived too late.