The demand for products that provide benefit externalities is generally ________ the demand for products that do not
A) greater than
B) less than
C) the same as
D) greater or less (depending on the market) than
B
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Assume that the marginal propensity to consume in an economy is 0.9. If the economy's full-employment real GDP is $500 billion and its equilibrium real GDP is $550 billion, there is an inflationary expenditure gap of
A. $5 billion. B. $500 billion. C. $100 billion. D. $50 billion.
Using the income approach, an estimate of the value of capital worn out producing GDP is:
a. indirect business taxes. b. capital consumption allowance or depreciation. c. gross private domestic investment. d. capital erosion estimate.
Which of the following is not an autonomous determinant of consumption expenditures?
a. real wealth b. the interest rate c. tastes and preferences d. current disposable income
An economist might argue that U.S. national defense should be funded through tax revenues because: a. U.S. citizens are not very patriotic
b. the government is always a more efficient provider of goods than the private market. c. the government always seeks to act benevolently on behalf of its citizens. d. individuals who refuse to contribute to a national defense fund cannot be excluded from benefiting from national defense.