The flypaper effect is _____
a. that government grants get shifted around to other uses
b. that government grants get spent on what they were intended to be spent on
c. that government grants are used to lower tax rates
d. that government grants are not used by local governments
b
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The Social Security trust fund is an asset to the federal government and a liability, simultaneously
a. True b. False
Positive externalities arise when
A) an unprofitable firm is shut down. B) a profitable firm is regulated. C) tax rates are reduced. D) production of a good generates benefits that spill over to third parties.
Consumer goods:
A.) Account for half of total U.S. output. B.) Include expenditures for durable goods, nondurable goods, and services. C.) Include government expenditure on welfare and food stamps. D.) Account for the smallest portion of U.S. GDP.
Which of the following is NOT a wage or employment strategy that a union would follow?
A. Set a wage rate that will maximize the income of its members. B. Set a wage rate such that all workers that want to find a job can find a job. C. Set a maximum wage rate such that a shortage of workers will result. D. Set a wage rate that will maximize the income of only some of its members.