Which does the government not control directly?
a) Spending on health
b) Spending on defence
c) Firms' investment decisions
d) Spending on state education
Answer: c) Firms' investment decisions
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Social Security was intended to
A. cover all of the income necessary for retirement. B. provide a safety net of retirement income to which recipients would add their savings and pensions. C. provide retirement income for only those without private pensions. D. provide retirement income for only those who did not save for themselves.
Legal restrictions on entry into an industry
a. are strongly opposed by those already in an industry. b. are promoted through lobbying efforts by those already in the industry, thereby further increasing the social costs of monopoly. c. are promoted by those who wish to enter the industry, thereby potentially increasing the social welfare generated by the industry. d. are always instituted to protect the public's health and welfare.
A balanced budget would not affect income because an increase in government spending is exactly matched by an increase in taxes
a. True b. False Indicate whether the statement is true or false
Which of the following firms have no market power?
A. clothing companies B. fast food chains such as McDonald's C. theme parks D. gold panners during the gold rush