If government is going to provide an environment for economic prosperity
A) the percentage of citizens voting in major elections must increase.
B) it must run budget deficits.
C) the self-interest of voters, politicians, and bureaucrats must be brought into harmony with efficient use of resources.
D) it must run budget surpluses.
C) the self-interest of voters, politicians, and bureaucrats must be brought into harmony with efficient use of resources.
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Under the right circumstances, what resource can be used in the production of the skills of a talented gymnast?
A) Baseball bats B) Wheaties C) Poetry books D) Cigarettes E) All of the above.
What was the name of the plan, enacted in 2011, in which the Fed bought $400 billion worth of long-term securities while selling $400 billion worth of short-term securities?
A) Operation Go Long B) Operation Twist C) QE2 D) QE3
A capital gains tax acts to
A) reduce the interest rate received by loan demanders. B) increase the interest rate received by loan demanders. C) increase the interest rate received by loan suppliers. D) reduce the interest rate received by loan suppliers.
On the Fourth of July, there is no fireworks display in the small town of Yankeeville, even though it would be efficient for such a display to be produced. Which of the following statements is correct?
a. The lack of a fireworks display in Yankeeville arises because of an externality. b. The lack of a fireworks display in Yankeeville arises because the free-rider problem does not apply to goods such as fireworks displays. c. In deciding not to produce a fireworks display in Yankeeville, private individuals and private firms made decisions that were privately irrational. d. All of the above are correct.