Figure 7-14
Of the long-run AC curves in Figure 7-14, which displays increasing returns to scale for all levels of output?
a.
1
b.
2
c.
3
d.
4
a
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Which of the following is a disadvantage of government provision of a public good such as national defense? (i) The government does not know the exact willingness of consumers to pay for the public good. (ii) The free-rider problem is more likely to occur when the government provides a public good than when the private sector provides a public good. (iii) Taxpayers do not agree on the optimal
quantity of the public good that the government should provide. a. (i) only b. (i) and (ii) only c. (i) and (iii) only d. (i), (ii), and (iii)
If the government purchases multiplier is 4 and a change in government spending leads to a $500 million decrease in aggregate demand, we can conclude that
A. Government spending decreased by $125 million. B. Taxes increased by $500 million. C. Government spending decreased by $100 million. D. Taxes decreased by $100 million.
The ________ the Lorenz curve is from/to the line of perfect equality, the ________ is the Gini coefficient, and the ________ income equality exists.
A. closer; higher; less B. farther; higher; more C. farther; higher; less D. closer; lower; less
Which of the following government agencies estimates and compiles the U.S. GDP accounts?
A. The American Economic Association B. The Federal Reserve System C. The Bureau of Economic Analysis D. The Internal Revenue Service