Rob wants to create a personal trainer program service and needs to pay for equipment and gym space. He can finance this capital investment by
a. borrowing money from a friend.
b. selling shares of future profits.
c. using his own savings
d. All of the above.
d
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When production efficiency does NOT occur,
i. an economy is producing at a point within its PPF. ii. there are unemployed resources. iii. allocative efficiency cannot occur. A) i only B) i and ii C) iii only D) i and iii E) i, ii, and iii
The long-run social benefits of infant industry protection are more likely to be realized if
(a) investors believe that tariff barriers are permanent. (b) investors believe that tariff barriers are transitory. (c) tariff barriers increase over time. (d) tariff barriers are replaced with quotas over time.
A special-interest issue is one that
a. allocates the cost of the activity in accordance with the benefits received. b. benefits a small, well-organized interest group at the expense of taxpayers or consumers. c. benefits everyone and imposes a cost on everyone. d. benefits a small, well-organized interest group but makes that group pay for the cost of the program.
According to the Keynesian view, government spending will have its greatest impact during a severe recession because
a. automatic stabilizers will shift the budget toward a surplus during a severe recession. b. underemployed resources will be widespread and the crowding out of private spending will be minimal. c. budget deficits will reduce interest rates and thereby stimulate private investment. d. increases in the government's outstanding debt will lead to lower future taxes.