As the size of government increases as a share of the economy,
a. the burden of deadweight losses of taxation generally diminishes.
b. the rate of return derived from projects undertaken by the government will tend to increase.
c. the government generally becomes more heavily involved in unproductive and even counterproductive activities.
d. the activities of government are generally limited to protective functions such as public safety , national defense, and provision of a limited set of public goods.
C
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Under perfect competition, firms produce the ________ level of output because price equals marginal cost.
A. equitable B. most costly C. efficient D. greatest
We calculate many different kinds of price indexes:
A. in order to capture a complete picture of how price changes are affecting the economy. B. to see how the prices of different groups of goods are changing. C. to measure how different groups of people in the economy are being affected by changing prices. D. All of these statements are true.
If new manufacturers enter the computer industry, then, holding all other things constant,
a. each "old" manufacturer must sell fewer computers than before. b. some "old" manufacturers must exit the industry. c. the equilibrium price of computers must rise. d. the equilibrium quantity demanded of computers must rise.
Which of the following lists two things that both increase the money supply?
a. the Fed buys bonds and lowers the discount rate. b. the Fed buys bonds and raises the discount rate. c. the Fed sells bonds and lowers the discount rate. d. the Fed sells bonds and raises the discount rate.