Public goods are desired because
A) people want and value them but the private sector will not make them available.
B) we want the government to spend our tax dollars.
C) they came in small units.
D) they make supply equal to demand for private goods.
Answer: A
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According to the rational expectations theory,
a. the expected results of government anti cyclical measures are intensified by the actions of businesses and individuals. b. the easy expansion of the money supply by banks eventually leads to excess productive capacity. c. the expected results of government anti cyclical measures are offset by the actions of businesses and individuals. d. the limited expansion of the money supply by banks eventually leads to excess productive capacity.
When the government enacts policies to redistribute income,
a. the objective is to enhance efficiency and a side effect is that the allocation of resources becomes more equal. b. the objective is to enhance efficiency and a side effect is that the allocation of resources becomes less equal. c. the objective is to enhance equality and a side effect is that the allocation of resources becomes more efficient. d. the objective is to enhance equality and a side effect is that the allocation of resources becomes less efficient.
A budget surplus means that:
a. Government revenues are greater than expenditures in a given year b. Government expenditures are greater than revenues in a given year c. Government revenues are greater than expenditures throughout time d. Government expenditures are falling and government revenues are rising
Which of the following statements is correct for a private closed economy?
A. Saving equals planned investment only at the equilibrium level of GDP. B. All levels of GDP where planned investment exceeds saving will be too high for equilibrium. C. Planned and actual investment are identical at all possible levels of GDP. D. Saving equals actual investment only at the equilibrium level of GDP.