The political functions of government differ from the economic functions of government in that
A) the political functions relate to income distribution while the economic functions relate to the way exchange is carried out.
B) the political functions are performed at the federal government while the economic functions are at the state and local government levels.
C) the political functions involve elections and the court systems while the economic functions involve taxation and transfers.
D) the President deals with the economic functions while Congress deals with the political functions.
A) the political functions relate to income distribution while the economic functions relate to the way exchange is carried out.
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Government provides a nonexcludable public good that no one wants. This situation is most closely related with:
A) government solving a market failure. B) government failure. C) market failure. D) the market solving a government failure.
According to monetarists, when will the economy move back to the natural rate of unemployment after a change in output?
a) In the short-run. b) In the long-run. c) Immediately after a decrease in the money supply. d) Immediately after an increase in the money supply.
When markets are contestable, a monopoly firm must behave as if it had competitors, even though the market structure is monopolistic.
Answer the following statement true (T) or false (F)
The Mayor of Stuckeyville is considering increasing the tax on bowling. He is confident that tax revenues will increase but recognizes the possibility that they may decrease. The mayor is engaging in
A) dynamic tax analysis. B) static tax analysis. C) a policy that will cause the tax base to increase. D) a policy that will cause the tax base to remain unchanged.