Governments can impede economic growth for many reasons. Which of the following is not a major reason?
a. High taxes can reduce consumption & investment, and they can reduce the incentive to work.
b. Government projects may have relatively low marginal returns.
c. Governments may spend more than they earn in tax revenues.
d. The lack of government accountability to a bottom line could allow for wasteful spending
e. Regulation may damage production incentives.
.C
You might also like to view...
A copyright creates a monopoly by restricting ________
A) the prices that can be charged B) demand for the product C) entry into the market D) the number of creators and inventors
Refer to Figure 13-1. Ceteris paribus, an increase in government spending would be represented by a movement from
A) AD1 to AD2. B) AD2 to AD1. C) point A to point B. D) point B to point A.
Suppose quantity demanded is given by Qd = 100 - P, and quantity supplied is given by Qs = 20 + 3P. In this case, equilibrium price, P*, and equilibrium quantity, Q*, are as follows:
A. P*= 40, Q*= 140 B. P*= 80, Q*= 20 C. P*= 10, Q*= 90 D. P*= 20, Q*= 80
The U.S. GDP includes
A. wine harvested and bottled in California. B. increases in the divorce rate. C. time spent studying for an exam. D. the exchange of four shirts for four skirts at a consignment store.