A factor that limits the amount of saving in developing countries is the fact that:
A. The banking system does not encourage saving
B. There is too much foreign aid so savings is not needed
C. The level of aggregate domestic output is low
D. The government controls financial institutions and makes it difficult for people to save
C. The level of aggregate domestic output is low
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Means-tested welfare benefits provide recipients with a strong incentive to:
A. work. B. leave welfare. C. accurately disclose their earnings. D. underreport their earnings.
When a tax is justified on the basis that the taxpayers who pay the tax receive specific government services from payment of the tax, the tax
a. is considered horizontally equitable. b. burden is minimized. c. satisfies the benefits principle. d. is considered vertically equitable.
The identity that shows that total income and total expenditure are equal is
a. GDP = Y. b. Y = DI + T + NX. c. GDP = GNP - NX. d. Y = C + I + G + NX.
The real GDP data could be properly thought of as a(n)
What will be an ideal response?