When services are provided and financed by local rather than higher levels of government and people can move freely among governmental units,
A) local governments will be in a strong position to exploit various groups of voters.
B) a local government will always be able to generate more revenues by raising taxes.
C) competition among governmental units will help residents get more for their tax dollars.
D) there will be less incentive for government officials to operate efficiently than if there was only one centralized government.
C) competition among governmental units will help residents get more for their tax dollars.
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Government expenditures are defined as
A) government spending on goods and services plus transfer payments. B) the excess of total expenditures over total revenues. C) the sum of all past borrowing by the government. D) the excess of total revenues over total expenditures.
Everything else held constant, a decrease in autonomous consumer spending will cause the IS curve to shift to the ________ and aggregate demand will ________
A) right; increase B) right; decrease C) left; increase D) left; decrease
By keeping new firms from entering the market, oligopolies are more likely to have
a. long-run economic profit b. low prices c. great efficiency d. decreasing marginal costs e. economies of scale
Suppose the velocity of money is 6, the amount of money in circulation is $600 billion, the index of prices is 180, and real GDP is $20 billion. According to the strict quantity theory of money, if the money supply decreased to $300 billion,
a. the velocity of money would rise to 12. b. the index of prices would fall to 90. c. real GDP would decrease to $10 billion. d. the velocity of money would decline to 3.