Government-sponsored goods are those goods
A. that have lower than average negative externality.
B. that society views desirable through the political process.
C. that only low-income individuals consume.
D. that companies give away as promotional prizes.
Answer: B
You might also like to view...
Gordon notes that the average growth rate of labor productivity between 1996 and 2004 was ________ percent, and the average reached ________ percent in 2003-04
A) 3; 3.5 B) 2; 205 C) 1.7; 3.2 D) 2; 1.5
Robert received a $100 gift certificate to a bookstore a year ago. The economy has been in an inflationary period for the last year. This gift certificate is
A) expressed in real terms and is worth more. B) expressed in nominal terms and is worth less. C) not expressed in either real or nominal terms since it is not money. D) adjusted in terms of the CPI.
The Environment Ministry in Japan proposed a new carbon tax to meet Japan's obligations to reduce carbon dioxide emissions under the Kyoto Treaty. The tax would be levied on producers and importers of fossil fuels, and the expectation is that it would be largely passed on to consumers. The rationale for this tax is that it will:
A. reduce a negative externality. B. turn a private good into a public good. C. turn a public good into a private good. D. reduce a positive externality.
Suppose the annual growth rate of GDP in Belize is 3.5 percent. In 20 years, GDP in Belize will double
A) 1 time. B) 1.5 times. C) 3.5 times. D) 7 times.