What is the government’s primary method for providing public goods and reducing free riders?
a. Requiring citizens to pay taxes
b. Shifting R&D to private firms
c. Investing in higher education
d. Guaranteeing intellectual property rights
a. Requiring citizens to pay taxes
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In the aggregate expenditures model, consumption depends on
A. disposable income. B. the natural rate of unemployment. C. whether the government has a budget surplus or deficit. D. potential output.
Urban traffic moves as effectively as it does because
A) all drivers have the same attitudes regarding courtesy, safety, and speed. B) drivers are usually concentrating intently on their own narrow goals. C) insurance does not cover all the costs of an accident. D) drivers take other drivers' specific goals and interests into account. E) police are able to enforce the city's traffic plan.
Imperfect policy credibility implies that
A) traders may not believe that a central bank will do what it says. B) a central bank may intentionally undermine its policies. C) central bank authorities cannot be trusted. D) currency traders will often try to undermine central bank movements.
Refer to the information provided in Table 22.3 below to answer the question(s) that follow. Table 22.3 PointAggregate Income (Y)Aggregate Consumption (C) A 15 19 B 30 23 C 45 27 D 60 31 E 75 35 F 90 39The data in the table was used to estimate the following consumption function: C = 20 + 0.2YRefer to Table 22.3. The error for point A is equal to
A. -4. B. -2. C. +2. D. +4.