If a conflict of interest exists
A) it will always have serious adverse consequences.
B) it may not have a serious adverse consequences if the incentive to take advantage of the conflict is low.
C) the government needs to step in to pass legislation to remove the conflict.
D) there will not be serious adverse consequences, even if the incentive to take advantage of the conflict is low.
B
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Which of the following government actions is appropriate in a market with an external benefit?
A) taxes B) vouchers C) marketable permits D) setting a tax equal to the transactions costs E) price ceiling
Which of the following groups does not support the special interests of the elderly?
a. the elderly themselves b. the relatives of the elderly c. the housing industry d. doctors and nursing home operators e. those under 65 who are concerned about their future benefits
Which of the following is not a component of the aggregate demand curve?
a. Consumption (C). b. Investment (I). c. Government spending (G). d. Net exports (X-M). e. All of these are components.
The GDP of Country A is equal to $124.5 billion, and the consumption expenditure in the economy is $85.9 billion. The government of Country A charges a flat tax rate of 20 percent. The government also spends $4.5 billion per year in the form of transfer payments. The household saving in the country is:
a. $38.6 billion. b. $22.5 billion. c. $13.7 billion. d. $12.9 billion.