An example of targeted government spending is its spending on
a. education
b. police protection
c. national defense
d. space exploration
e. welfare
E
You might also like to view...
Refer to the figure below. If the government imposed a price ceiling of $40, what would happen in this market? 
A. There would be excess supply. B. The equilibrium quantity would fall. C. The price ceiling would have no effect. D. There would be excess demand.
Using the above figure determine which country has the comparative advantage in the production of corn. In addition, determine which has the comparative advantage in the production of barley
What will be an ideal response?
The degree of control over its output price that any seller has is limited by
a. the existence of actual competition in the market. b. the existence of potential competition from producers who might try to enter the market. c. the elasticity of the demand for the product. d. All of these.
The President of Vulcan hires you as an economic consultant. He is concerned that the output level in Vulcan is too high and that this will cause prices to rise. He feels that it is necessary to reduce output by $10 billion. He tells you that the MPC in Vulcan is 0.6. Which of the following would be the best advice to give to the Vulcan president?
A. increase taxes by $10 billion B. reduce government purchases by $10 billion C. reduce government purchases by $4 billion D. increase taxes by $2.5 billion