Public finance is the subdiscipline of economics that studies the various ways in which
A. governments may regulate and promote the stability of the financial sector.
B. firms in the financial sector provide services to households and firms.
C. governments raise and expend money.
D. the general public acquires financing for their purchases.
Answer: C
You might also like to view...
Suppose the local electrical utility, a legal monopoly based on economies of scale, was split into four firms of equal size, with the idea that eliminating the monopoly would promote competitive pricing of electricity. What do you anticipate would happen to prices?
A. The government would impose barriers to entry that protect prices
B. More competition would lead to lower prices
C. There would likely be no change in prices.
D. They would each have to raise prices to cover their higher costs.
The Wii is a wildly popular home video game console released by Nintendo. The Wii system was first available in the U.S. in November, 2006 and has sold more than 30 million units as of August 2010. The Wii retails for $199
Suppose Ahmed is willing to pay $230, Lana is willing to pay $175, and Bodie is willing to pay $300 for a Wii. What is the value of Lana's consumer surplus? A) No consumer surplus is generated because Lana will not buy the Wii. B) $249 C) $225 D) $24
The rivalry versus nonrivalry issue is
A. relevant to the issue of market failure. B. not relevant to the issue of market failure. C. relevant to the free-rider problem. D. a and c E. b and c
The tax multiplier is the number that, when multiplied by the
A) budget deficit, gives us the change in total spending. B) budget deficit, gives us the change in the public debt. C) change in taxes, gives us the change in total spending. D) change in government spending, gives us the change in total spending.