In some cases the government can make everyone better off by raising taxes to pay for certain goods that the market fails to provide
a. True
b. False
Indicate whether the statement is true or false
True
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Billy is considering the purchase of a rental house. The house costs $240,000 and it will generate annual revenues of $15,000 and annual expenses of $3,000. What is the internal rate of return of this investment?
A) 5% B) 7.5% C) 3.75% D) 24%
Nominal GDP uses constant base-year prices to place a value on the economy's production of goods and services, while real GDP uses current prices to place a value on the economy's production of goods and services
a. True b. False Indicate whether the statement is true or false
Between 1950 and 2012, U.S. real GDP per capita grew at an average annual rate of about:
A. 5.5 percent. B. 4.2 percent. C. 3.2 percent. D. 2.0 percent.
According to rational expectations theory, discretionary monetary and fiscal policy will be ineffective primarily because of the:
A. Successes of macroeconomic policy makers B. Inability of policy makers to time decisions properly C. Reaction of the public to the expected effects of policy changes D. Slow impact of policy to stimulate changes in real output and employment