Which of the following best explains the political attractiveness of debt financing relative to taxation?
a. Debt financing pushes the visible cost of government into the future.
b. Debt financing exposes the current costs of government programs; taxes do not.
c. Debt financing reduces the attractiveness of special-interest spending.
d. Taxes allow politicians to supply voters with immediate benefits without having to impose a visible cost.
A
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Which of the following statements is true of sharecropping?
a. It is an inefficient arrangement if the work of the farmer is not monitored. b. The higher the profit to the landowner, the higher the share of the farmer. c. Both the farmer and the landowner will work to maximize farm profits. d. The higher the profit to the landowner, the lower the share of the farmer.
The Environmental Kuznets Curve
a. models a theorized relationship between environmental pollution and population b. is positively sloped and linear c. illustrates the relationship between economic growth and environmental degradation d. graphs as a U-shaped curve
Which of the following statements about price controls is true?
A. A price ceiling causes a shortage if the ceiling price is above the equilibrium price B. A price floor causes a surplus if the price floor is below the equilibrium price C. A price ceiling causes an increase in demand if the ceiling price is set below the equilibrium price D. A price ceiling causes a decrease in demand if the price floor is set above the equilibrium price E. Price ceilings and price floors result in a misallocation of resources
Which of the following causes the supply curve to shift to the left?
a. increase in consumer’s output prices b. increase in seller’s input prices c. decrease in consumer’s output prices d. decrease in seller’s input prices