Offer a defense of economic growth.
What will be an ideal response?
The case for economic growth is compelling, especially for those countries who have a relatively low standard of living. Growth makes the scarcity problem less acute. Related to this issue, growth also makes it possible for nations to alleviate poverty. There are also nonmaterial considerations that result from economic growth such as the ability to increase one’s leisure time. Proponents of growth argue that growth and environmental protection can occur simultaneously and that the case for limiting growth in order to preserve the environment is a false issue. Growth is sustainable because the market system conserves scarce resources through higher prices.
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Which would be considered to be one of the factors that shift the aggregate supply curve in the short run? A change in ________.
A. net exports B. personal income taxes C. government regulation D. consumer spending
When measuring the actual output produced in an economy, one should focus on GDP measured in nominal terms
Indicate whether the statement is true or false
Suppose the demand curve for a good is highly elastic and the supply curve is highly inelastic. If the government taxes this good,
a. buyers and sellers will each share 50 percent of the burden, regardless of the elasticities of the demand and supply curves. b. sellers will bear a larger share of the tax burden. c. the distribution of the burden will depend upon whether the buyers or the sellers are required to send the tax to the government. d. buyers will bear a larger share of the tax burden.
Logrolling refers to the
A) exchange of political favors by corporations. B) need for the president to veto an entire bill when only certain parts of the bill are objectionable. C) exchange of votes to gain support for legislation. D) a and b E) none of the above