Government spending has no effect on resource allocation since the government simply engineers a transfer of private goods and services from one group in the economy to some other group
Indicate whether the statement is true or false
F
You might also like to view...
Use the figure below, and the regular percentage change formula, to answer the following question: 
Assume that price decreases from $10 to $2. The price elasticity of supply is about
A. 0.35 and supply is inelastic. B. 1 and supply is unit-elastic C. 4 and supply is elastic. D. 1.25 and supply is elastic.
The idea of a "New Economy" driven by hi-tech equipment such as computers, cell phones, and the World Wide Web was rooted in part in the apparent simultaneous reversal of which of the following economic problems?
A) inflation B) slow growth in productivity C) the budget deficit D) All of the above
What is the best description of Northern wages from 1860-1864?
a. A relatively large decrease in demand relative to the decrease in supply led to lower wages and fewer people working. b. An increase in the demand for labor and decrease in the supply of labor led to lower wages and fewer people working. c. Increases in both the demand and supply for labor led to more people employed who were working for about the same wages. d. A decrease in the demand for labor coupled with an increase in the supply led to many fewer people working, but those who were employed worked for higher wages.
The following graph is the production possibilities curve of a nation:
Refer to the above graph. The combination "5 drill presses and 2 bread" indicates:
A. An unattainable combination for the nation
B. Some resources in the nation are unemployed
C. An ideal combination for the nation
D. A combination produced when the nation is at full employment