Transfer payments are not part of government expenditure on goods and services because transfer payments
A) are not predictable given the nature of their appropriation and allocation.
B) do not represent the purchase of a final good or service.
C) are not always spent on goods produced in the U.S.
D) The premise of the question is incorrect because transfer payments are part of government purchases of goods and services.
B
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Which of the following is a normative economics statement?
a. An increase in the minimum wage will reduce teenage employment. b. Increasing the minimum wage will result in more votes for progressive candidates. c. Raising the minimum wage would greatly increase labor costs in certain industries. d. Raising the minimum wage is a poor idea because living wage laws are better.
The U.S. Justice Department prosecuted Microsoft under the terms of
A) the Sherman Act. B) the Kefauver amendment. C) the 1933 amendment to the Federal Trade Commission Act. D) none of the above.
A certain machine will last one year, will produce $120 in income (received one year later), and will cost $100 . The lowest interest rate at which this investment will be unprofitable is
a. 10 percent. b. 11 percent. c. 19 percent. d. 22 percent.
Refer to Figure 35.3 for the production possibilities curves for the United States and Mexico. These two curves indicate that
A. The United States does not have an absolute advantage in the production of either good. B. Mexico has an absolute advantage in the production of machinery. C. The United States has an absolute advantage in the production of both goods. D. The United States has a comparative advantage in the production of machinery.