Over the past century in the U.S., what has been federal government revenue as a percentage of GDP? What has been state and local government revenue as a percentage of GDP?
According to Figure 1, in 1913, the federal government collected revenues of a bit less than 5 percent of GDP; today the federal government collects revenues of a bit less than 30 percent of GDP. In 1913, state and local governments collected revenues of about 5 percent of GDP; today state and local governments collects revenues of about 15 percent of GDP. Note that in order to calculate the percents for state and local governments, one must look at the difference between the top line (total government) and the bottom line (federal government).
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A consumer has $50 to spend. He has to decide between buying two goods: magazines priced at $5 each and DVDs priced at $10 each. Which of the following combinations of the two goods will exactly satisfy his budget constraint?
A) 3 magazines and 4 DVDs B) 2 magazines and 4 DVDs C) 6 magazines and 1 DVD D) 2 magazines and 2 DVDs
Which of the following is the best example of the concept of "normal"?
A. Hot dogs and hot dog buns B. SUVs C. Coke and Pepsi D. Ramen noodles
Being penalized via taxes for making more money in dollars even though your purchasing power hasn't changed at all is called:
A. shoe-leather costs. B. menu costs. C. the velocity of inflation. D. tax distortion.
Which of the following best expresses the law of diminishing returns?
A. Because large-scale production allows the realization of economies of scale, the real costs of production vary directly with the level of output. B. Population growth automatically adjusts to that level at which the average product per worker will be at a maximum. C. As successive amounts of one resource (labor) are added to fixed amounts of other resources (capital), beyond some point the resulting extra or marginal output will decline. D. Proportionate increases in the inputs of all resources will result in a less-than-proportionate increase in total output.