Brian is running for state senator and if elected, pledges to improve economic growth. His plan for economic growth includes increasing spending on public education and providing tax incentives to encourage improved private education
His plan is likely to A) slow economic growth because it includes a provision for private education.
B) have no effect on economic growth because property rights are not changed.
C) speed economic growth as the quality of resources improve.
D) fail because the provision for private education limits government involvement in education.
E) have no effect on economic growth because government spending cannot affect the economic growth rate.
C
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Refer to Figure 13.2. If Oliver's political views place him at the L4 position and George's political views place him at the C4 position, Alice's preference for mayor is
A) Oliver Cousins. B) George Glass. C) Alice is indifferent between the two candidates. D) Alice definitely does not like either candidate.
When considering changes in tax policy, economists usually focus on
A) people's ability to pay taxes. B) the marginal tax rate. C) the average tax rate. D) people's willingness to pay taxes.
Assume the market price is greater than average total cost at the perfectly competitive firm's profit-maximizing level of output
In this case, the firm is earning positive economic profits, which act as an incentive for new firms to enter the market. Indicate whether the statement is true or false
Net social benefits are maximized when:
A) marginal benefits equal marginal costs. B) marginal benefits are greater than marginal costs. C) marginal benefits are less than marginal costs. D) total benefits are equal to total costs. E) average benefits are marginal benefits are equal.