When governments become more heavily involved in taxing one group in order to provide benefits to other groups, which of the following will be encouraged?
a. rapid economic growth
b. rent-seeking activity
c. an improvement in the efficiency of government bureaucracies
d. competitive private markets
B
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Economic models are often expressed in
A. equations. B. words. C. graphs. D. physical objects.
When financial institutions borrow from the Federal Reserve, this is called
A. open market operations. B. borrowing on margin. C. using the discount window. D. fiscal policy.
A bank that has $10,000 in excess reserves can extend new loans up to a maximum of:
A. $1,000. B. $9,000. C. $10,000. D. $100,000.
Social Security began as a "pay-as-you-go" system, meaning that payments to current retirees were paid
A) from taxes collected from current workers. B) as the government collected revenues from tariffs and excise taxes in the years Social Security payments were made. C) as long as the government had funds available. D) from taxes collected from retired workers.