Our free-rider model of voluntary giving suggests that, when the government subsidizes private giving to charity, it's contribution will simply "crowd out" the private contributions so long as no one is at a corner solution.
Answer the following statement true (T) or false (F)
False
Rationale: When the government subsidizes private giving, it lowers the price of giving -- which is different than when the government contributes directly (when crowd out can happen.)
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The standard way to measure the effects of debt in an economy is to look at the stock of debt relative to
A) the total budget. B) GDP. C) total government spending. D) federal tax revenue.
The process of changing a technology to fit local resources is
a. invention b. adaptation c. innovation d. technology transfer e. all of the above
The benefits to trading nations based on comparative advantage accrue from:
A) Specialization only B) Specialization and trading C) Trading only D) Protection of domestic industries
Explain the difference between intermediate goods and final goods and give an example of each.
What will be an ideal response?