All of the following are possible funding sources for the government EXCEPT
A) user charges.
B) taxes.
C) interest income collected from government bonds.
D) borrowing.
C
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Which of the following individuals would be most likely to support a balanced budget amendment to the constitution?
a. "Christmas is when children ask Santa Claus for things and their parents pay for them. Deficits is when adults ask government for things and their children pay for them."-Richard Lamm b. "In a boom, inflation can be caused by allowing unlimited credit to support excited enthusiasm of business speculators. But in a slump government expenditure is the only sure means of obtaining quickly a rising output."-J.M. Keynes c. "If we face a recession we should not lay off employees. Employees are not guilty; why should they suffer?"-Akio Morita d. "Underbalancing the budget during a depression is not primarily a deliberate policy but a practical necessity."-Gunnar Myrdal
Suppose that in a particular market, the demand curve is highly elastic, and the supply curve is highly inelastic. If a tax is imposed in this market, then the
a. buyers will bear a greater burden of the tax than the sellers. b. sellers will bear a greater burden of the tax than the buyers. c. buyers and sellers are likely to share the burden of the tax equally. d. buyers and sellers will not share the burden equally, but it is impossible to determine who will bear the greater burden of the tax without more information.
Which of the following examples would fit this graph?
a. A celebrity endorsement causes the desire for broccoli to increase as flooding destroys much of the broccoli crop.
b. A report emphasizing the health benefits of yogurt causes increased competition to buy this good as production of yogurt increases.
c. Fewer consumers buy CDS as more stream music, causing the production of CDs to drop.
d. Fewer consumers buy corn chips as more buy potato chips, but the production of corn chip remains constant.
In the specificfactors model, suppose that a country has a comparative advantage in manufacturing output. Will landowners be better or worse off following the opening of trade with other countries?
a. They will be better off. b. They will be worse off. c. They may be better off or worse off because the real rental on capital in terms of the agricultural good rises and the real rental in terms of the manufactured good falls. d. They may be better off or worse off because the real rental on capital in terms of the manufactured good rises and the real rental in terms of the agricultural good falls.