Samuelson's theory of public expenditure demonstrates that
A. an efficient mix of public goods is produced when local land/housing prices and taxes come to reflect consumer preferences.
B. government is inefficient and will always engage in too much spending.
C. through government regulation of private industry, the optimal level of public good provision is achieved.
D. an optimal (or most efficient) level of output exists for every public good.
Answer: D
You might also like to view...
Two firms, A and B, each currently emit 100 tons of chemicals into the air. The government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution emitted into the air. The government gives each firm 40 pollution permits, which it can either use or sell to the other firm. It costs Firm A $200 for each ton of pollution that it eliminates before
it is emitted into the air, and it costs Firm B $100 for each ton of pollution that it eliminates before it is emitted into the air. After the two firms buy or sell pollution permits from each other, we would expect that Firm A will emit a. 20 fewer tons of pollution into the air, and Firm B will emit 100 fewer tons of pollution into the air. b. 100 fewer tons of pollution into the air, and Firm B will emit 20 fewer tons of pollution into the air. c. 50 fewer tons of pollution into the air, and Firm B will emit 50 fewer tons of pollution into the air. d. 20 more tons of pollution into the air, and Firm B will emit 100 fewer tons of pollution into the air.
Which of the following fall during a recession?
a. both retail sales and employment b. retail sales but not employment c. employment but not retail sales d. neither employment nor retail sales
High expected inflation leads to ________ increases in wages and costs and to ________ actual inflation.
A. small; low B. large; low C. small; high D. large; high
Refer to the information provided in Figure 13.10 below to answer the question(s) that follow. 
Figure 13.10 Refer to Figure 13.10. The ________ is 1,000.
A. profit-maximizing number of subscribers B. shut-down point C. economically efficient number of subscribers D. break-even number of subscribers