Research confirms that government provision of infrastructure:
A. promotes economic growth.
B. increases human capital.
C. leads to reduced spending on research and development.
D. hinders economic growth.
Answer: A
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The rate at which one currency is traded for another is called a(n)
a. prime rate. b. trade rate. c. exchange rate. d. money rate.
When a tax is levied on the buyers of a good, the
a. supply curve shifts upward by the amount of the tax. b. quantity supplied increases for all conceivable prices of the good. c. buyers of the good will send tax payments to the government. d. demand curve shifts to the right by the horizontal distance of the tax.
Which of the following is an example of the free-rider problem?
A. a fast food employee who is provided food at work B. a student who refuses to buy a college catalog C. a neighbor who refuses to help pay for a street light that is intended to help reduce crime D. a law enforcement officer who receives a uniform from the police department
Refer to Scenario 3.2 below to answer the question(s) that follow.SCENARIO 3.2: Lettuce and spinach are substitutes. Lettuce and tomatoes are complements. Lettuce is a normal good. During the winter, about 20% of the lettuce crop was destroyed by flooding.Refer to Scenario 3.2. The government wants to protect consumers from rising food prices. Therefore, price restrictions are imposed on lettuce growers prohibiting them from raising the price of lettuce. This will cause
A. an increase in the demand for lettuce. B. an excess demand for lettuce. C. an excess supply of lettuce. D. a decrease in the supply of lettuce.