As government becomes larger and larger as a share of the economy, economic growth is likely to decline because
a. taxes are reduced to levels that are inconsistent with economic efficiency.
b. governments are involved in many activities for which they are ill-suited.
c. tax-transfer activities are reduced and sometimes virtually eliminated.
d. governments do not spend enough on the provision of key public goods like education.
B
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Farm groups spend considerable amounts of money to maintain and enlarge political support for farm subsidies. This illustrates:
A. coalitions. B. rent-seeking activity. C. the special-interest effect. D. the voting paradox.
Informational advertising is mostly used for
A) an inexperience good. B) a search good. C) an experience good. D) a persuasive good.
A sole proprietorship is limited to how many owners?
A) 1 B) 2 C) 10 D) There is no limit to the number of owners.
The slope of the short-run aggregate supply curve depends on how sharply: a. the marginal cost of production rises as real GDP expands. b. the average cost of production rises as real GDP expands. c. real GDP increases as the price level rises
d. nominal GDP increases as the price level rises. e. product prices change as the price level rises.