The increase in redistributive programs as a percentage of the government's budget has led to _____
a. a greater potential payoff for special interests
b. a welfare bureaucracy dependent upon the existence of the redistributive program
c. a concomitant rise in private charity
d. a and b
e. b and c
d
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
Refer to Figure 7.1. Start from initial equilibrium. If firms reduce their capital stock, the new real wage could be ________ and the new amount of labor employed could be ________
A) X; C B) X; A C) Z; C D) Y; C
Suppose the production of a good results in negative externalities. If output is at the intersection of the demand curve and the marginal social cost curve, then
A. the socially optimal level of output will be produced. B. society will incur a net social cost. C. society will want less output produced, and producers will be willing to satisfy this desire at a price that society deems acceptable. D. b and c
During the past quarter of a century, the world's extreme poverty rate (per capita income of less than $1.25 per day) has
What will be an ideal response?