Which of the following is not an example of a transfer payment?
A) unemployment insurance payments
B) health insurance payments to an army private
C) social security payments to retirees
D) social security payments to disabled persons
Answer: B
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Economists who are in favor of smaller government tend to prefer ________________ when expansionary _______________ policy is needed to raise aggregate demand
A) tax cuts; fiscal B) tax cuts; monetary C) more government spending; fiscal D) more government spending; monetary
Being a price taker essentially means
A) a firm can influence the market price. B) a firm cannot influence the market price. C) the firm cannot legally set its price above the market price. D) the firm cannot legally set its price below the market price.
The equilibrium level of real GDP is $1,000 . the target level of real GDP is $1,250, and the marginal propensity to consume (MPC) is 0.60 . The target can be reached if government spending is:
a. increased by $60 billion. b. increased by $100 billion. c. increased by $250 billion. d. held constant.
Total surplus refers to the sum of consumer surplus and producer surplus
a. True b. False Indicate whether the statement is true or false