Other things equal, the stock of capital inherited by future generations is likely to be smaller when government spending:
A. is financed by taxation.
B. increases during a period of recession, rather than prosperity.
C. is financed by borrowing.
D. is primarily for capital-type goods.
Answer: C
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Suppose an excise tax of $1 is imposed on every case of beer sold and sellers are responsible for paying this tax. How would the imposition of the tax be illustrated in a graph?
A) The supply curve for cases of beer would shift to the right by $1. B) The supply curve for cases of beer would shift to the left by less than $1. C) The supply curve for cases of beer would shift to the left by more than $1. D) The supply curve for cases of beer would shift to the left by $1.
Which of the following is the best example of a firm operating in a monopolistically competitive market?
a. A Kansas wheat farmer. b. TGI Fridays, a family restaurant. c. U.S. Postal Service. d. Boeing, an aircraft manufacturer
The current supply of Rembrandt paintings:
a. is perfectly elastic b. is elastic. c. is unit elastic. d. is perfectly inelastic.
Income is to money as
a. short story is to novel. b. video is to digital photo. c. song is to symphony. d. entree is to dessert.