One In the News article titled "Perceptions of Government Failure" indicates that people think that the government is not very trustworthy when it comes to solving domestic issues. If this is true, this is an example of
A. Government failure.
B. The free-rider dilemma.
C. Market failure.
D. The problem of externalities.
Answer: A
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In drawing a production possibilities curve, it is assumed that:
A) technology does not change. B) the economy is fully employed and may not be efficient. C) there are increasing qualities of the factors of production. D) all of the above are true.
Assuming that automobiles are normal goods, a rise in consumer income, other things being equal, will cause:
A. the demand curve for automobiles to shift to the left. B. the demand curve for automobiles to shift to the right. C. a downward movement along the demand curve for automobiles. D. an upward movement along the demand curve for automobiles.
Data on after-tax income and consumption spending for the Adam Smith family are given below:After-tax IncomeConsumption Spending9,00017,20014,00021,20019,00025,20024,00029,200Based on these data, the Adam Smith family has a marginal propensity to consume equal to:
A. 0.8. B. 0.6. C. 0.9. D. 0.75.
According to the economic way of thinking, elected government officials tend to favor
A) contractionary monetary policies. B) contractionary fiscal policies. C) expansionary monetary and fiscal policies. D) monetary and fiscal policies consistent with the public interest.