List five major economic activities of government, and give an example of each
1 . Government as referee. Example: enforcing contracts, or supervising truth-in-lending laws.
2 . Regulating business. Example: anti-trust laws, environmental laws.
3 . Expenditures. Example: government pensions, national defense.
4 . Taxes. Example: income, sales, property taxes.
5 . Government as redistributor. Example: poverty programs, social security.
You might also like to view...
Intra-industry trade will tend to dominate trade flows when which of the following exists?
A) small differences between relative country factor availabilities B) large differences between relative country factor availabilities C) homogeneous products that cannot be differentiated D) constant cost industries E) uneven distribution of abundant resources between two countries
_____ and _____ are examples of complementary products
a. Coke; Pepsi b. Coffee; tea c. Hot dogs; hot dog buns d. Pens; pencils
When the domestic price of a good is below the world price, the imposition of a tariff on the import of the good _____
a. results in a loss in producer surplus b. results in a gain in producer surplus c. does not affect government revenue d. does not lead to a deadweight loss
There are two goods in the economy, apples and bread. The relative price of apples has increased. This could be due to
A) an increase in the absolute price of apples, ceteris paribus. B) a decrease in the absolute price of bread, ceteris paribus. C) a decrease in the absolute price of apples, ceteris paribus. D) an increase in the absolute price of bread, ceteris paribus. E) a and b