Because people enjoy the benefits of public goods whether they pay for them or not, people are usually ________ to pay for them. This is known as the free-rider problem, and is intrinsic to ________ goods.
A. willing; public
B. unwilling; public
C. willing; private
D. unwilling; private
Answer: B
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The government is most involved in economic decisions in a country with a ______ economy.
a. mixed b. command c. market d. traditional
Table 5.3National Income Accounts (dollar figures are in billions)Expenditures for consumer goods and services$8,200Exports$1,700Government purchases of goods and services$2,500Social Security taxes$1,900Net investment$1,400Indirect business taxes$1,400Imports$1,900Gross investment$1,800Corporate income taxes$600Personal income taxes$1,500Corporate retained earnings$130Net foreign factor income$100Government transfer payments to households$1600Net interest payments to households$500On the basis of Table 5.3, the value of the income aggregate that is defined as "income received by households before payment of personal taxes" (also known as personal income) is
A. $5,870 billion. B. $10,070 billion. C. $10,600 billion. D. $9,570 billion.
A tariff is
A. a tax on imports. B. a tax on exports. C. a payment by the government to an exporter. D. a legal limit on the amount of a good that may be imported.
Early doubters of the claims that Head Start could end the cycle of poverty based their conclusions on
A. what they perceived to be statistical flaws in the original research. B. the claim that no matter how good the program was it could not make up for the home environment. C. the claim that the original research was fraudulent. D. A) and B).