One reason for the good record of democracies on economic growth is that:
A. people can become rich by competing for the limited economic resources.
B. people can become rich by gaining economic resources in their favor.
C. the public as a whole can become rich by supporting efficient policies that generate economic growth.
D. the public as a whole can become rich by equally dividing the economic resources.
Answer: C. the public as a whole can become rich by supporting efficient policies that generate economic growth.
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For most goods and services, the burden of a tax is on the sellers
Indicate whether the statement is true or false
During World War II (1941–45) which of the following fell?
(a) Real GDP per capita (b) Private consumption expenditures (c) Private investment (d) Government expenditures
If all variable taxes in the United States were removed and only fixed taxes remained, what would be the effect on the expenditures schedule?
a. The expenditure schedule will shift upward and become steeper. b. The expenditure schedule will shift upward and become less steep. c. The expenditure schedule will shift downward and become less steep. d. The expenditure schedule will shift downward and become steeper.
If indicators like weak demand and falling commodity prices caused concern about deflation (falling prices), what could the Fed do to head off the deflationary threat?
a. increase the reserve requirements imposed on banks b. buy bonds in order to expand the money supply c. increase the discount rate d. increase the national debt