The "rate of return" refers to:
a. the increase in future output made possible by investing one unit of current output in capital accumulation.
b. the dividend payments made on corporate issued stock.
c. the increase in current output made possible by investing in units of future output in capital accumulation.
d. the rate at which capital depreciates.
a
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What is the Ricardian equivalence proposition?
a. Governments change their spending/savings to offset private households spending/saving. b. Governments and private households change their spending and saving decisions in the same direction. c. Private households change their spending/saving to offset government spending/saving. d. Private households do not take government spending/saving into consideration when making decisions.
The actual benefit of a government subsidy is determined primarily by
a. the elasticities of demand and supply. b. the legal (or statutory) assignment of the subsidy c. the number of exchanges that are made possible as a result of the subsidy. d. whether the subsidy is paid by cash or check.
Within a country, a tariff mainly causes a redistribution of well-being between the domestic producers and the government.
Answer the following statement true (T) or false (F)
All of the following are reasons that health care costs have risen so much in the past few decades EXCEPT
A. third party payments. B. higher imports. C. the aging population. D. new technologies.