Define the following terms:
a.
Recession
b.
Mixed economy
c.
Transfer payments
d.
Progressive taxation
What will be an ideal response?
| a. | A recession is a period of time during which the total output of the economy falls. |
| b. | A mixed economy is one with some public influence over the workings of free markets. There may also be some public ownership mixed in with private property. |
| c. | Transfer payments are sums of money that certain individuals receive as outright grants from the government rather than as payments for services rendered. |
| d. | A tax is progressive if the ratio of taxes to income rises as income rises. |
You might also like to view...
You read a story in the newspaper announcing the proposed merger of Dell Computer and Gateway. The merger is expected to greatly increase Gateway's profitability. If you decide to invest in Gateway stock, you can expect to earn
A) above average returns since you will share in the higher profits. B) above average returns since your stock price will definitely appreciate as higher profits are earned. C) below average returns since computer makers have low profit rates. D) a normal return since stock prices adjust to reflect expected changes in profitability almost immediately.
With capitalism, which of the following do market forces reward?
a. productivity and government ownership of resources b. underutilization and government ownership of resources c. productivity and private ownership of resources d. underutilization and private ownership of resources
China has few state-owned enterprises left in its economy
Indicate whether the statement is true or false
In the figure above showing the costs and benefits of paper production, there is an
A) external cost associated with paper production. B) external benefit associated with paper production. C) external cost associated with paper consumption. D) external benefit associated with paper consumption.