In real terms, the cost of government spending is measured by
A. Combining the private sector output with the public sector output sacrificed when the government employs scarce resources.
B. The private sector output sacrificed when the government employs scarce resources.
C. Subtracting private sector output from the public sector output sacrificed when the government employs scarce resources.
D. The public sector output sacrificed when the government employs scarce resources.
Answer: B
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Which of the following statements is true?
A) A worker who undertakes general training is likely to earn above his value of marginal product. B) Firm-specific training results in gains to a worker and not to an employer in the labor market. C) Job-specific training results in gains to a worker's employer, but it does not result in gains to the worker in the labor market. D) Training received by a worker does not affect his wages as wage rates are determined by the forces of demand and supply in the labor market.
The Solo Coal Mine is the only employer in the small town of Way out there. The market supply of coal miners is Qs = 0.02W - 200, where W is the annual wage of a coal miner and Q is the number of people who would accept employment as a coal miner. What is the coal mine's marginal expenditure when it hires 150 coal miners?
A. $17,500 B. $30,500 C. $10,000 D. $25,000
The price elasticity of demand for a linear demand curve follows the pattern (moving from high prices to low prices)
a. elastic, unit elastic, inelastic. b. unit elastic, inelastic, elastic. c. inelastic, unit elastic, elastic. d. elastic, inelastic, unit elastic.
Taxes are generally classified into these three categories:
A. progressive, regressive, lump-sum B. progressive, regressive, proportional C. proportional, flat tax, gradual D. gradual, proportional, progressive