How does the United States compare to other nations on a per capita scale as far as government production and taxation?
What will be an ideal response?
Government production in the United States as a share of GDP is relatively low compared with other countries. Perhaps more surprising is that U.S. citizens are perhaps the most lightly taxed, at below 30 percent of GDP. The cry for “No more taxes” may reflect a concern with government inefficiency, but Americans are mistaken if they believe their tax burden is high compared to other countries.
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During the expansion phase of the business cycle, which of the following eventually increases?
A) income B) production C) employment D) all of the above
Under what circumstances will the residual supply curve for a country be upward sloping?
A) when it does not import any of the good from the rest of the world B) when it imports a small portion of the rest of the world's supply of the good C) when it imports a large portion of the rest of the world's supply of the good D) Either A or B
Individuals' expectations of lower future prices is a
A) rightward shifter of the AD curve. B) leftward shifter of the AD curve. C) reason for moving up along a given AD curve. D) reason for moving down along a given AD curve.
Relative to barter, money does NOT
A. facilitate specialization and exchange. B. increase the frequency of transactions. C. reduce transaction costs. D. require a "double coincidence of wants."