Taxes, transfer payments, and government purchases are the components of automatic stabilizers
a. True
b. False
Indicate whether the statement is true or false
False
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The demand for money is based on
A) the demand for consumption, demand for investment, and demand by government. B) the demand for cash, demand for securities, and the demand for real estate. C) a demand for liquidity and wealth. D) the transactions demand, asset demand, and precautionary demand.
The contract curve:
A. shows the unique Pareto efficient allocation of a pair of goods in an Edgeworth box. B. shows every inefficient allocation of consumption goods in an Edgeworth box. C. passes through the tangencies between pairs of indifference curves in an Edgeworth box. D. passes through every intersection between pairs of indifference curves in an Edgeworth box.
If health care spending is already on the flat-of-the-curve, it may not be possible to buy improved health status by increasing spending. In this situation, the best way to improve health status may be to
a. increase the availability of government health insurance. b. invest in biotechnology to determine the genetic factors that improve health. c. improve life-style decisions by reducing smoking, alcohol consumption, and drug use. d. improve access to medical care. e. improve overall educational attainment so people can better follow the advice from the medical community.
Which of the following groups would most likely benefit from a law that is extremely tough on those who drink and drive?
a. truck drivers b. taxi drivers c. bartenders d. doctors and nurses