Which of the following is a key difference between the economic activities of government and those of private firms?
A)Private economic activities create externalities; government activities do not.
B) Government has the legal right to force people to do things; private firms do not.
C) Private firms face the constraint of scarcity; government does not.
D) Government focuses primarily on equity; private firms focus only on efficiency.
B) Government has the legal right to force people to do things; private firms do not.
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In cost-benefit analysis, a low discount rate tends to favor projects with relatively ____ lives
a. short b. long
Exports amount to about 11 percent of U.S. GDP
a. True b. False
Excise taxes are
a. proportional since everyone pays the same tax rate b. progressive since richer people buy more things c. regressive since they represent a greater percent of poor people's incomes d. proportional taxes since everyone has the same tax bill e. progressive since richer people have higher tax bills
The productivity slowdown in the U.S. from 1973 to 1995
a. can be explained easily with economic theory. b. continued into the third millennium. c. still confuses economists. d. was a continuation of the slowdown from 1948 to 1973.