An advantage of public works over transfer payments as a means of reducing unemployment is that
a. public works provide more direct aid to those suffering most from unemployment.
b. transfer payments are unlikely to decrease unintended excess inventories of consumer goods.
c. public works require using a large amount of capital goods and producing a large amount of supplies.
d. All of these.
c. public works require using a large amount of capital goods and producing a large amount of supplies.
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The capture theory of regulation predicts that regulations bring ________ to producers and impose ________ on any individual consumer
A) small benefits; small costs B) small benefits; large costs C) large benefits; small costs D) large benefits; large costs E) large benefits; no costs
Refer to Figure 17-1. Suppose that the economy is currently at point A, and the unemployment rate at A is the natural rate. What policy would the Federal Reserve pursue if it wanted the economy to move to point C in the long run?
A) Increase the money supply. B) Buy treasury bills. C) Lower the discount rate. D) Sell treasury bills. E) No policy will move the economy to point C in the long run.
All games involve which of the following?
A. Full information B. Payoffs C. A predictable outcome D. A game master
Tiger Woods, a professional golfer, pays a garage mechanic to change the motor oil of his car even though he can do the work himself. Which of the following best explains why Tiger Woods does not change the oil himself?
A) Tiger Woods has an absolute advantage in changing oil.
B) Tiger Woods has a comparative advantage in changing oil.
C) There is no opportunity cost for the garage mechanic to change oil.
D) The opportunity cost of changing oil is higher for Tiger Woods than for the garage mechanic.