Which of the following statements is true?
A. Sales, excise, and flat-rate taxes violate the ability-to-pay principle of taxation fairness because each results in a smaller dollar burden on the poor than the rich.
B. Government failure may occur if voters are rationally ignorant.
C. Special-interest group political pressure results only from programs for which benefits outweigh costs.
D. Majority-rule voting and benefit-cost analysis result in the same projects being undertaken.
Answer: B
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When the interest rate falls, the
A. transactions demand for money increases. B. total amount of money demanded decreases. C. asset demand for money decreases. D. total amount of money demanded increases.
An increase in exports of goods or services with no change in imports of goods or services
A) decreases GDP. B) increases GDP. C) may increase or decrease GDP depending on whether it is the export of goods or the export of services that increased. D) has no effect on GDP.
Each year, the president must submit a budget proposal to Congress by:
a. October. b. July. c. January. d. April.
After the imposition of the quota, the amount of revenue collected by the government is ________. 
A. $75,000 B. $0 C. $150,000 D. $50,000