Which of the following is the best test of whether a government program should be undertaken?
a. approval by a majority in each of the two branches of Congress
b. the total number of jobs created by the program
c. the increase in GDP as a result of the government program
d. value generated by the government program that exceeds the value of the production it crowds out
Ans: d. value generated by the government program that exceeds the value of the production it crowds out
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Which of the following topics is NOT a primary concern of macroeconomists?
A) fluctuations in the level of economic activity B) differences in standards of living across countries C) relative wages of skilled and unskilled workers D) unemployment
Considering both product markets and resource markets, most economic decision makers participate in the economy as both buyers and sellers
a. True b. False
In a competitive market with free entry and exit, if all firms have the same cost structure, then
a. all firms will operate at their efficient scale in the short run. b. all firms will operate at their efficient scale in the long run. c. the price of the product will differ across firms. d. Both a and b are correct.
When smaller political groups wish to have influence in a government with pluralistic voting, they will:
A. drop from races, and consolidate with larger parties. B. stay in political races, in the hopes of swaying the vote away from the candidate the majority favors. C. stay in political races, in the hopes of a miracle. D. drop from races, and campaign instead to sway the vote away from the candidate the majority favors.