Which of the following statements is TRUE?
A) Government spending as a percent of total national income has continuously decreased since the 1950s.
B) Transfer payments are money payments made by the government for which no goods or services are currently received.
C) Education is the largest category of federal government expenditures.
D) Transfers in kind include Welfare, Social Security, and unemployment insurance benefits.
B
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Suppose the value of the price elasticity of supply is 4. What does this mean?
A) For every $1 increase in price, quantity supplied increases by 4 units. B) A 1 percent increase in the price of the good causes quantity supplied to increase by 4 percent. C) A 1 percent increase in the price of the good causes the supply curve to shift upward by 4 percent. D) A 4 percent increase in the price of the good causes quantity supplied to increase by 1 percent.
Suppose your marginal utility from consuming the 3rd slice of cake is zero, then your total utility from consuming cake is
A) negative. B) increasing. C) maximized. D) decreasing.
When a country imposes an import quota, its exchange rate
a. rises because the supply of dollars in the market for foreign-currency exchange falls. b. falls because the supply of dollars in the market for foreign-currency exchange rises. c. rises because the demand for dollars in the market for foreign-currency exchange rises. d. falls because the demand for dollars in the market for foreign-currency exchange falls.
As a percentage of GDP, U.S. health care spending is:
A. higher than that for Germany and Japan but lower than that of the United Kingdom and Sweden. B. higher than for any other major industrial country. C. lower than that for Canada. D. nearly identical to that of the other major industrial nations.B