Which of the following is an example of a public good?
a. Pizzas
b. A crowded bus stop
c. National Defense
d. Cable television
c
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When the government intervenes in markets with externalities, it does so in order to
a. increase production when negative externalities are present. b. protect the interests of bystanders. c. make certain all benefits are received by market participants. d. reduce production when positive externalities are present.
Which of the following expenditures would not be included in GDP?
a. All of these choices would be counted in GDP. b. Purchase of a new lawnmower. c. Purchase of a silver cup previously sold new in 1950. d. Purchase of a ticket to the latest movie.
The lag in realizing that a macroeconomic problem exists is called
A) the recognition lag. B) the implementation lag. C) the impact lag. D) the market lag.
"Last month unemployment fell to 4 percent, its lowest level in years. The economy is growing rapidly, but consumer prices have risen at an annual rate of 10 percent during the last six months." Which of the following policies would be most appropriate under these circumstances?
A. both an increase in government spending and a decrease in taxes B. an increase in taxes C. a reduction in taxes D. an increase in government spending