Why might a politician start a costly spending program if its costs exceed its social benefits?
A. The costs cannot be measured therefore the politicians focus on the benefits which are explicit.
B. The politician is trying to find ways to raise more money for the next election.
C. Voters do not care about the costs of programs, as long as their taxes do not go up.
D. The politician gains prestige and voters are not well informed of the benefits and costs.
Answer: D. The politician gains prestige and voters are not well informed of the benefits and costs.
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The national debt is the amount of ________.
Fill in the blank(s) with the appropriate word(s).
??Exhibit 16A-2 Macro AD/AS Models
?
?In Panel (a) of Exhibit 16A-2, the economy is initially in short-run equilibrium at real GDP level Y1 and price level P2. If the federal government or Fed decides to intervene, it would most likely:
A. ?increase taxes. B. ?decrease the money supply. C. ?increase the level of government spending for goods and services. D. ?decrease the level of government spending for goods and services.
Which one of the following is the best example of an oligopolistic industry?
A. cigarettes B. wheat growers C. apple growers D. public utilities
Which of the following is a reason why some firms do not use commission pay?
A) The best workers stay and less productive workers leave. B) It is difficult to measure the output and attribute output to a particular worker. C) It gives workers incentive to produce more. D) It increases firm profits.