Which one of the following is NOT a government failure?
A. The "bridge to nowhere" in Alaska
B. The FEMA reaction to Hurricane Katrina
C. Allowing federal budget deficits to be financed by foreigners while calling for further tax cuts to help incumbent politicians get reelected
D. Water pollution
D. Water pollution
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Redistributing income from the rich to the poor creates inefficiency because
A) of wasteful expenditures by people receiving welfare grants. B) of the administrative costs to operate the government redistribution agencies. C) the redistribution creates an incentive to produce less output. D) Both answers B and C are correct. E) Both answers A and C are correct.
A corporation's income is taxed
a. immediately after it is deposited in the bank. b. only before it is distributed to its owners. c. only after it is distributed to owners. d. both before and after it is distributed to owners.
Use the following table to answer the next question.Current AccountFinancial AccountCapital Account-$753,438 $30,696This country has a ________.
A. deficit in the financial account B. trade surplus C. surplus in the financial account D. deficit in the capital account
According to the substitution effect of labor supply, when the wage rate goes up:
A. it becomes more costly to consume leisure, so people will work more. B. it becomes less costly to consume leisure, so people will work more. C. the opportunity cost of enjoying leisure goes down. D. firms will hire more workers since people are more willing to work.