Generally, economists believe that crowding out is
A. complete fiction.
B. important but less than complete; one extra dollar of government spending decreases private spending by less than a dollar.
C. actually reversed; one extra dollar of government spending increases private spending.
D. complete; one extra dollar in government spending decreases private spending by a dollar.
Answer: B
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Based on empirical evidence, the "farm problem" that has confronted U.S. policymakers for many years is attributable, in large part, to the relatively inelastic demand for many agricultural products
Indicate whether the statement is true or false
Independent workers using specialized capital save the costs of contracting but risk:
a. generalization. b. opportunism. c. inefficiency. d. over-utilization.
Income supplements large enough to significantly increase the economic status of poor people will
a. encourage behavior that increases the risk of poverty. b. create high implicit marginal tax rates that reduce the incentive of transfer recipients to earn. c. provide low-income recipients with a strong incentive to work and increase their earnings so they will not be dependent on income transfers. d. do both a and b.
Which of the following does consumption rely on to provide goods and services:
A. Producers B. Consumers C. Owners D. Deciders