Which of the following is an unintended consequence of austerity policies?

A. Large budget deficits
B. Reduction in unemployment
C. Hyperinflation
D. Reduction in taxes


Answer: A

Economics

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As a possible approach to eliminating the government budget deficit, increasing taxes on the rich only would

A) not lead to a significant increase in tax revenues. B) lead to a significant increase in tax revenues. C) lead to an increase in real GDP. D) lead to a greater number of entitlements.

Economics

When the free rider problem is present in a market:

A. what people pay often does not reflect the real value they put on a good. B. the good will likely be over consumed. C. the good is rival in consumption. D. the good is easily excludable.

Economics

When a resource supply curve slopes upward, as it usually does, earnings consist of both opportunity cost and ________ ________

a. actual costs b. economic rent c. actual pay d. it only consists of opportunity costs

Economics

If a three-fourths majority of both houses of the U.S. Congress was required for approval of a spending project, economic analysis indicates that

A) inefficient government spending programs would expand. B) the political power of special-interest groups would increase. C) federal spending would increase sharply from the current level. D) the power of special interests would be diminished and federal spending reduced.

Economics