Measured as a share of the economy, total government expenditures:
A. have been between 10 and 15 percent of the U.S. economy since 1930.
B. have been between 20 and 25 percent of the U.S. economy since 1930.
C. rose from less than 10 percent in 1929 to about 35 percent currently.
D. declined from more than 50 percent in 1929 to approximately 25 percent currently.
Answer: C
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Refer to Figure 11.4. Which diagram illustrates the effect of an increase in the income tax rate?
A) A B) B C) C D) D
Imposing a restrictive quota on imported plasma TVs will:
a. increase the price of the plasma TVs and decrease the quantity consumed. b. increase both the price of the plasma TVs and the quantity consumed. c. leave the price of the plasma TVs unchanged but decrease the quantity consumed. d. leave the price and the quantity consumed of plasma TVs unchanged, because domestic producers will expand production to make up for the reduction in imports
Provide two circumstances where monopoly may offer efficiency advantages over competition.
What will be an ideal response?
Did the large U.S. budget deficits in the 1980s "crowd out" investment as some economists had predicted?
a. Yes, investment dropped as predicted. b. Yes, although investment did not fall nearly as much as some had feared. c. No, investment was not crowded out, but net exports dropped. d. No, no crowding out at all occurred.