Advocates of cutting taxes rather than increasing government expenditures in response to a recession argue that the increase in spending by consumers and business may be more effective than that of the government. Explain this argument
Households will spend disposable income on goods or service they find valuable. Businesses will spend their investment dollars on profitable projects. If politicians are rushed to increase expenditures, they may buy things of little public value. If they take the time to assess which projects are best, the spending is delayed.
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Water is cheap and diamonds are expensive because water has a ________, and diamonds have a ________
A) low total utility; high total utility B) low marginal utility; high marginal utility C) high marginal utility; low marginal utility D) low marginal utility and a low total utility; high marginal utility and a high total utility
How is average total cost calculated? If the total cost of producing 190 units of output is $355, what is the average total cost?
What will be an ideal response?
Illegal immigrants pay social security tax. Therefore, they receive social security benefits on retirement
a. True b. False Indicate whether the statement is true or false
If consumption expenditures increased by $150 million, while GDP remained the same, which of the following could have occurred, all else equal?
a. Exports increased by $150 million b. Imports decreased by $150 million c. Net exports increased by $150 million d. Net exports decreased by $150 million e. Private investment increased by $150 million