Regarding government intervention in the economy, which of the following statements is not true?
a. Liberals tend to favor intervention
b. Conservatives are inclined to adhere to fixed rules.
c. There is no guarantee that government intervention will have the desired effect.
d. The effect of government actions on interest rates and spending is unknown.
e. All of the above are true.
a
You might also like to view...
Refer to Scenario 1-1. Using marginal analysis terminology, what is another economic term for the incremental revenue received from the sale of the last 400 t-shirts?
A) sales revenue B) gross earnings C) gross profit D) marginal revenue
Assume that the marginal propensity to consume equals 0.75 and the marginal propensity to import equals 0.10 . By how much does spending on domestic goods increase if income increases by $300?
a. $195 b. $225 c. $30 d. $300 e. $75
A minimum wage that is set below the equilibrium wage will
a. cause increased unemployment b. have no effect on employment c. cause the overall wage to increase d. cause the overall wage to decrease e. create more jobs
A country’s level of productivity determines its
A. productivity growth rate. B. rate of population growth. C. current standard of living. D. future income potential.