Free goods are usually efficiently allocated without government intervention
a. True
b. False
Indicate whether the statement is true or false
False
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The consumption function will shift with
A) a decrease in real disposable income. B) a change in saving. C) a change in household wealth. D) an increase in real disposable income.
The income-expenditure model focuses on changes in
A) price. B) operational lags. C) output levels. D) import restrictions.
Monetizing the budget deficit
A) creates a full-employment deficit that exceeds the actual deficit. B) occurs when the Treasury sells bonds to businesses. C) helps stabilize the economy. D) leads to increases in the money supply.
A ten-year-old goes to a baseball convention this week and purchases a newly-autographed Barry Bonds baseball for $100. How would this affect GDP?
A) It wouldn't. B) GDP would increase by $10—reflecting the market price of the ball itself. C) GDP would increase by $90—reflecting the market price of Bonds' autograph. D) GDP would increase by $100—reflecting the market price of the autographed ball. E) GDP would have increased were the autographed ball purchased by somebody 16 years or older.