Which one of the following statements is correct?
A) Even if government programs are implemented with good intentions, they may still lead to undesirable outcomes.
B) When evaluating a government program, it is vitally important to consider the stated intentions of its proponents.
C) If policymakers have good intentions, their proposals will lead to desirable outcomes.
D) From the standpoint of economic efficiency, it makes no sense to consider the secondary effects generated by a new government program.
A) Even if government programs are implemented with good intentions, they may still lead to undesirable outcomes.
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Which of the following transactions would be excluded in the capital account?
A. A Japanese citizen purchases a U.S. Treasury bill. B. A Japanese citizen purchases an office building in Manhattan. C. A U.S. citizen purchases a share of stock from a Japanese company. D. An American purchases a Toyota.
If the price of Good X falls and total revenue rises, then
A. Demand for Good X is inelastic. B. The price elasticity of demand for Good X is equal to 1. C. Demand for Good X is unitary elastic. D. Demand for Good X is elastic.
Refer to the above table. Suppose the U.S. government (but not Europe) offers a $10 million subsidy?
What will be an ideal response?
The strength of the movement in the short-run aggregate supply schedule, in response to an aggregate demand shock is determined by ________
A) the price elasticity of demand B) the credibility of the monetary authorities C) the underlying state of the economy D) the choice of nominal anchors