Food stamps provided by the U.S. Department of Agriculture are an example of
A) a positive externality.
B) a private subsidy.
C) vouchers.
D) an external benefit.
C
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What is the main rationale economists provide for assigning government the responsibility of protecting people against foreign aggressors?
A) It would be too dangerous to allow citizens to keep and bear arms for the purpose of forming militias to defend their communities. B) Most people are patriotic only when the government is involved. C) "National defense" must by necessity be nationalized. D) People will not risk their lives unless government requires them to do so. E) Private providers could not exclude non-payers from the benefits.
Microeconomics studies
A) decisions made by individual consumers and firms. B) the changes in economic theory brought about by real-world events. C) how small changes in the unemployment rate can have far-reaching effects. D) how small changes in the money supply can have far-reaching effects.
The big-push strategy of development relies mainly on private incentives and a laissez- faire government policy
Indicate whether the statement is true or false
As the interest rate increases, the present value of future sums decreases, so firms will find fewer investment projects profitable
a. True b. False Indicate whether the statement is true or false