Samuelson's theory of public expenditure demonstrates that
A. government is inefficient and will always engage in too much spending.
B. an efficient mix of public goods is produced when local land/housing prices and taxes come to reflect consumer preferences.
C. an optimal (or most efficient) level of output exists for every public good.
D. through government regulation of private industry, the optimal level of public good provision is achieved.
Answer: C
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Which of the following contributes to economic growth?
A) increase in environmental protection policies B) increase in labor regulations restricting the hours of overtime allowed C) increase in labor productivity D) increase in consumer spending
Assume Brad worked as a contractor for a year and had revenues of $120,000 and explicit cost of $70,000 . If he could have been paid $80,000 working for a computer company, his accounting profit as a contractor was ____ and his economic profit was ____
a. $50,000 . -$30,000 b. $10,000 . $50,000 c. $40,000 . $50,000 d. $50,000 . $40,000
A permanent reduction in inflation would
a. permanently reduce the frequency of price changes and permanently lower unemployment. b. permanently reduce the frequency of price changes and temporarily raise unemployment. c. temporarily reduce the frequency of price changes and temporarily lower unemployment. d. temporarily reduce the frequency of price changes and temporarily raise unemployment.
Systemic risks are most likely to exist with regard to
A. small governments. B. large governments. C. small financial institutions. D. large financial institutions.