We may see government supply social work internally rather than through private firms because
a. it is a public good
b. it is difficult to monitor the quantity and quality of social work provided
c. private firms would seek to cover their costs
d. a government bureau would maximize its budget
e. there is a great demand for such services
B
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For which of the following questions would consumer sovereignty provide an answer?
a. Will a shovel or bulldozer be used to excavate the ground? b. Should the government provide trash collection services in the community? c. Should we have universal health coverage provided by the government? d. Will large or small cars sell the most this year? e. Should there be numerous competitors offering long-distance phone service to the consumer?
According to the absolute income hypothesis, the marginal propensity to consume
a. is always increasing b. increases as the absolute level of income increases c. decreases as the absolute level of income falls d. decreases as the absolute level of income increases e. always stays the same
A permanent reduction in net exports leads to
A. a proportional increase in real Gross Domestic Product (GDP). B. a more than proportional decrease in real Gross Domestic Product (GDP). C. a reduction in taxes, autonomous government spending, and a fall in real Gross Domestic Product (GDP). D. a less than proportional decrease in real Gross Domestic Product (GDP).
Among countries with similar Solow steady states, poorer countries tend to grow ______ rich countries:
A) more slowly than B) at the same rate as C) faster than D) sometimes faster and sometimes more slowly than