Policymakers utilize gross domestic product figures
a. to monitor recessions and expansions.
b. as a means to measure welfare.
c. to observe long-run growth trends.
d. Both a and c
e. All of the above
E
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Which of the following are criticisms of voucher programs?
a. They do not allow government to exercise enough control over education finance. b. Exclusionary admission standards under a voucher program would be unjust. c. Vouchers might be used at sub-standard schools. d. all of the above e. b and c
When comparing partial equilibrium effects to general equilibrium effects one can conclude that
A) general equilibrium effects are always larger. B) partial equilibrium effects are always larger. C) the effects are of equal size. D) one cannot determine before the fact which effect is greater.
Behavioral economists:
A. rely primarily on data drawn from the real world. B. rely primarily on experimental data. C. often arrive at unreasonable conclusions about consumer welfare. D. avoid mathematical models of behavior, as they do not adequately describe real world actions.
Suppose the government spends $10 billion subsidizing firms producing electricity with wind turbines because these firms are high cost producers. Will the subsidies lead to economic growth and higher income levels?
A) No, the turbines are an inefficient form of producing electricity and therefore the subsidies will increase the opportunity cost of supplying it. B) Yes, because more people will be employed by the firms producing electricity with wind turbines. C) Uncertain, higher income levels will be achieved if the employment of the firms producing electricity with the wind turbines expands; if not, incomes will fall. D) Yes, because the government will be able to finance the subsidies without reducing private sector output.