Governments,
A) like individuals, face opportunity costs.
B) unlike individuals, do not face opportunity costs.
C) only if they are relatively poor, face opportunity costs.
D) only if they are running budget deficits, face opportunity costs.
A
You might also like to view...
During the post war period,
a. an economic slowdown occurred immediately following the Armistice. b. a vigorous boom began in 1919. c. the Federal Reserve followed a policy of keeping its discount rate below market rates. d. All of the above are correct. e. Only b and c are correct.
Profit is the payment made for land resources
a. True b. False
Would the maximin criterion achieve perfect income equality?
a. Yes. There would be no way to reallocate resources to raise the utility of the poor. b. Yes. The maximin criterion would eliminate poverty. c. No. It is impossible for complete equality to benefit the worst-off people in society. d. No. Complete equality would reduce incentives to work, which would reduce total income, which would reduce the incomes of the worst-off people in society.
A reduction in the central bank's inflation target shifts the dynamic aggregate demand curve to the left resulting in:
A. higher current output and higher inflation. B. lower current output and higher inflation. C. higher current output and lower inflation. D. lower current output and lower inflation.