When goods are produced privately, but the cost of their purchase is paid for by the taxpayer or some other third party,
What will be an ideal response?
private producers of such goods will have little incentive to control costs and provide them at low prices.
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If the government restricts the selling of corn so that the quantity is less than the equilibrium quantity, then the policy I. creates a deadweight loss. II. decreases total surplus
A) Only I is correct. B) Only II is correct. C) Both I and II are correct. D) Neither I nor II is correct.
Business cycles all display the following characteristics except
A) a period of expansion followed by one of contraction. B) comovement of many economic variables. C) rising prices during an expansion and falling prices during the contraction. D) they last a period of one to twelve years.
The demand for borrowed funds is a derived demand
a. True b. False Indicate whether the statement is true or false
Per capita GDP is
a. real GDP divided by the GDP deflator b. a measure of income per person c. a measure of resources available to each person d. an indicator of the overall production of a government