What is the difference between federal purchases and federal expenditures?
What will be an ideal response?
Federal purchases refer to federal spending where the federal government receives a good or service in return, like an aircraft carrier. Federal expenditures include federal purchases plus interest on the national debt, grants to state and local governments, and transfer payments.
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Taxes on interest earned from savings are less inefficient
A. the less savings behavior responds to increases in the tax rate. B. the more savings behavior responds to increases in the interest rate. C. the less willing individuals are to substitute consumption today for consumption in the future. D. Both (a) and (b) E. Both (b) and (c) F. Both (a) and (c) G. None of the above H. All of the above
Arrow's impossibility theorem tells us:
A. political pressures will always corrupt a voting system, making none ideal. B. no voting system can aggregate the preferences of voters of three or more options while meeting all of the criteria for an ideal system. C. most voting systems meet the criteria for an ideal system, yet politicians cannot seem to change the way in which elections are held. D. no voting system can ever attain all four criteria for an ideal voting system.
You are part of a local community theater group. It is the goal of the group to increase the amount of revenue earned through ticket sales. Mary says the obvious solution is to increase ticket prices. Is Mary correct?
A. Mary is correct if the demand for tickets is price inelastic. B. Mary is incorrect if the demand for tickets is price inelastic. C. Mary is correct. The increase in ticket prices will always increase revenue. D. Mary is incorrect. The increase in ticket prices will never increase revenue.
A budget surplus is defined as the amount that the
A. government owes to lenders at any moment in time. B. government spends in any time period. C. government’s expenditures exceed receipts in any time period. D. government’s receipts exceed expenditures in any time period.