Which of the following might be a method that the government could use to promote the production of a good that generates positive externalities?
A) subsidies
B) regulations
C) financing additional production
D) All of the above are correct.
D
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Suppose that government purchases of goods and services increase by $200 and at the same time lump-sum taxes increase by $200 . Which of the following is true in this case?
a. Whether the budget deficit will increase or decrease will depend on the value of the marginal propensity to consume. b. The budget deficit will increase by $200 c. The budget deficit will increase by $400. d. The budget deficit will decrease as the economy expands. e. There will be no change in the budget deficit.
Which of the following is not a commonly-advanced argument for trade restrictions?
a. the jobs argument b. the national-security argument c. the infant-industry argument d. the efficiency argument
A basic purpose of macroeconomics is to explain:
A. Why businesses pollute. B. How businesses choose the profit-maximizing rate of output. C. Why the economy expands or contracts. D. How and why countries trade with each other.
Employee compensation accounts for about what percentage of national income?
A. 33 percent B. 42 percent C. 66 percent D. 90 percent