Excise taxes create inefficiency by ______.
a. allowing economic choices to be politically controlled
b. allowing the market to determine the cost of harmful products
c. placing an unfair burden on the highest wage earners
d. excluding major product categories from government oversight
a. allowing economic choices to be politically controlled
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In his classic treatise on public finance, Richard Musgrave says the economic activities of the state can be broken down into _____
a. allocation, distribution, production b. allocation, distribution, stabilization c. allocation, production, protection d. production, protection, allocation
An option may add value to a transaction because:
a. interest charges are reduced. b. the price of the good is reduced. c. additional information may become available. d. options provide buyers with monopsony power.
What does job specialization do?
a. It allows workers to focus on the parts of the production process where they have an advantage. b. It allows workers to focus on all aspects of the production process. c. It allows organizations to maximize the tasks in which workers perform. d. It allows the production process to be performed by a single worker.
Higher interest rates and, therefore, a decrease in investment spending is most likely to be caused by which policy mix?
a. deficit reduction and expansionary monetary policy b. larger deficits and contractionary monetary policy c. larger deficits and expansionary monetary policy d. deficit reduction and contractionary monetary policy