Government programs that take money from high-income people and give it to low-income people typically
a. improve economic efficiency because they reducing poverty.
b. reduce economic efficiency because they distort incentives.
c. have no effect on economic efficiency because they both reduce poverty and distort incentives.
d. sometimes improve, sometimes reduce, and sometimes have no effect on economic efficiency.
B
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Since 1929, total government taxes as a percentage of GDP:
a. climbed from 10 percent to over 35 percent. b. remained close to 30 percent. c. climbed from 30 percent to about 50 percent. d. climbed from 15 percent to about 50 percent.
A util represents a unit of measurement for the
a. dollars a consumer spends on a good b. consumer surplus earned when paying less than he/she would have been willing to spend c. way a consumer responds to a change in price d. happiness a person obtains from consuming a good e. consumer surplus a person acquires when buying a good at less than market price
The theory that our population would grow too quickly relative to our food supply is associated with
A. Adam Smith. B. Karl Marx. C. Thomas Malthus. D. John Maynard Keynes.
Policymakers who believe that the costs of unemployment are very high will tend to favor which of the following during a recessionary gap?
A. Moderate fiscal stimulus, no monetary stimulus B. Fiscal and monetary tightness C. Moderate monetary stimulus, fiscal tightness D. Strong fiscal and monetary stimulus