How is total government spending defined? What is its size in the economy?
What will be an ideal response?
Total government spending consists of government purchases of goods and services and transfer payments. Each has a different effect on the economy. Purchases are exhaustive because they directly use the economy’s resources while transfers are non exhaustive. Total government spending is equal to about one-third of domestic output.
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First-degree and second-degree price discrimination are similar in each of the following ways except which one?
A) They both convert all possible consumer surplus into additional economic profit. B) In both practices, firms earn greater economic profit than if they charged a single price for every unit. C) In both practices, firms produce more than if they charged a single price. D) In both practices, consumers pay higher prices for the first units that they buy.
If the U.S. dollar appreciates, it becomes cheaper for Australians to visit their relatives in the United States
a. True b. False
If the price of a company's stock is expected to fall in the future, then people holding such shares will have an incentive to get rid of them
a. True b. False Indicate whether the statement is true or false
Technical efficiency in production means a given level of output is produced with the minimum amount of inputs.
Answer the following statement true (T) or false (F)