A main rationale for government intervention in markets ________ and ________
A) is to reduce producer surplus; redistribute wealth
B) concerns the creation of public goods; reduces free-riding
C) is to correct market failures; increase surplus
D) There is never an economic rationale for government intervention.
C
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If interest rates rise and still real investment spending increases, what must have happened to the function relating investment to the interest rate?
According to 2014 data on the U.S. population, which of the following was correct for the adult population of prime working age, ages 25-54?
a. Black females had higher labor-force participation rates and lower unemployment rates compared to white females. b. Black females had similar labor-force participation rates and higher unemployment rates compared to white females. c. Black females had both lower labor-force participation rates and lower unemployment rates compared to white females. d. Black females had lower labor-force participation rates and higher unemployment rates compared to white females.
The distinction between real and nominal rates of interest is understood by
A. most public policy makers. B. the majority of the American population. C. a majority of legislators. D. relatively few Americans.
Suppose the federal budget deficit for the year was $100 billion and the economy was in a recession
If the economy had been at potential GDP, it is estimated that tax revenues would have been $60 billion higher and government spending on transfer payments $50 billion lower. Using these estimates, the cyclically adjusted budget A) deficit was $210 billion. B) deficit was $110 billion. C) surplus was $110 billion. D) surplus was $10 billion.