When compared with other governments around the world, government spending in th
ID: 2816968 • Letter: W
Question
When compared with other governments around the world, government spending in the United States as a percentage of GDP_____.
a. is generally lower than similar countries
b. is generally higher than similar countries
c. is about average relative to similar countries
d. is impossible to compute because of differences between countries
The individual’s budget constraint is _____.
a. the amount of money she has in the bank
b. determined by dividing the individuals income by the price of the goods she wants to buy
c. the maximum amount one good she can consume given her consumption of other goods
d. a line depicting all the possible budgets an individual could have at various occupations
Which of these actions will occur to the budget constraint when an individual’s income increases?
a. shifts outward
b. shifts backward
c. rotates clockwise
d. cannot be determined from the information given
The utility maximizing consumption bundle for an individual can be found by locating _____.
a. the individual’s bliss point
b. any point on an indifference curve touching the budget constraint
c. the highest point on an individual’s indifference curve
d. the point tangent to an individual’s budget constraint
The market system is based upon _____.
a. money
b. voluntary exchange
c. capitalism
d. profits
_____ a cornerstone of the market economy.
a. Mutually beneficial exchange is
b. A strong central bank
c. Monopoly rents are
d. Government regulation is
As long as the value of additional units of output exceed the opportunity cost of that output, _____.
a. it will not be produced
b. it likely will not be produced
c. it will be produced
d. it is likely to be produced
The subject matter of public economics falls into the two general categories of _____ and _____.
a. public interest; private interest
b. coercion action; individual liberty
c. revenue generation; government spending
d. civilian activities; military duties
The market system is able to allocate resources efficiently because individuals have the right to the output they produce and _____.
a. freedom of the press
b. freedom of speech
c. freedom of movement
d. freedom of exchange
Government institutions that protect the rights of individuals are ______.
a. the executive, legislative, and judicial branches of government
b. federal, state, and local governments
c. federal agencies such as OSHA, FEC, and the FCC
d. police, military branches, and the court system
Employing utilitarianism as a measure of the public interest _____.
a. is inconsistent with the concept of a social welfare function
b. attempts to minimize the problems associated with market failure
c. attempts to maximize total utility in a society
d. avoids comparing individual’s utilities
The Pareto optimality concept is _____.
a. equivalent to the concept of economic efficiency
b. equivalent to Pareto superiority
c. equivalent to utilitarianism
d. equivalent to cost-benefit analysis
A property right _____.
a. entails responsibility
b. means you can burn trash in your yard whenever you want
c. is absolute
d. is completely different than the right to free speech
The Coase Theorem states that _____.
a. in the absence of transactions costs, the allocation of resource will be independent of property right assignment
b. in the absence of transactions costs, the allocation of resources will be dependent on property right assignment
c. with transactions costs, the allocation of resources will be independent of property right assignment
d. with transactions costs, the allocation of resources will be dependent of property right assignment
The Coase Theorem implies that _____.
a. absent transactions costs, resources will be efficiently allocated
b. absent transactions costs, resources will be inefficiently allocated
c. with significant transactions costs, resources will be efficiently allocated
d. with significant transactions costs, resources will be inefficiently allocated
When compared with other governments around the world, government spending in the United States as a percentage of GDP_____.
a. is generally lower than similar countries
b. is generally higher than similar countries
c. is about average relative to similar countries
d. is impossible to compute because of differences between countries
The individual’s budget constraint is _____.
a. the amount of money she has in the bank
b. determined by dividing the individuals income by the price of the goods she wants to buy
c. the maximum amount one good she can consume given her consumption of other goods
d. a line depicting all the possible budgets an individual could have at various occupations
Which of these actions will occur to the budget constraint when an individual’s income increases?
a. shifts outward
b. shifts backward
c. rotates clockwise
d. cannot be determined from the information given
The utility maximizing consumption bundle for an individual can be found by locating _____.
a. the individual’s bliss point
b. any point on an indifference curve touching the budget constraint
c. the highest point on an individual’s indifference curve
d. the point tangent to an individual’s budget constraint
The market system is based upon _____.
a. money
b. voluntary exchange
c. capitalism
d. profits
_____ a cornerstone of the market economy.
a. Mutually beneficial exchange is
b. A strong central bank
c. Monopoly rents are
d. Government regulation is
As long as the value of additional units of output exceed the opportunity cost of that output, _____.
a. it will not be produced
b. it likely will not be produced
c. it will be produced
d. it is likely to be produced
The subject matter of public economics falls into the two general categories of _____ and _____.
a. public interest; private interest
b. coercion action; individual liberty
c. revenue generation; government spending
d. civilian activities; military duties
The market system is able to allocate resources efficiently because individuals have the right to the output they produce and _____.
a. freedom of the press
b. freedom of speech
c. freedom of movement
d. freedom of exchange
Government institutions that protect the rights of individuals are ______.
a. the executive, legislative, and judicial branches of government
b. federal, state, and local governments
c. federal agencies such as OSHA, FEC, and the FCC
d. police, military branches, and the court system
Employing utilitarianism as a measure of the public interest _____.
a. is inconsistent with the concept of a social welfare function
b. attempts to minimize the problems associated with market failure
c. attempts to maximize total utility in a society
d. avoids comparing individual’s utilities
The Pareto optimality concept is _____.
a. equivalent to the concept of economic efficiency
b. equivalent to Pareto superiority
c. equivalent to utilitarianism
d. equivalent to cost-benefit analysis
A property right _____.
a. entails responsibility
b. means you can burn trash in your yard whenever you want
c. is absolute
d. is completely different than the right to free speech
The Coase Theorem states that _____.
a. in the absence of transactions costs, the allocation of resource will be independent of property right assignment
b. in the absence of transactions costs, the allocation of resources will be dependent on property right assignment
c. with transactions costs, the allocation of resources will be independent of property right assignment
d. with transactions costs, the allocation of resources will be dependent of property right assignment
The Coase Theorem implies that _____.
a. absent transactions costs, resources will be efficiently allocated
b. absent transactions costs, resources will be inefficiently allocated
c. with significant transactions costs, resources will be efficiently allocated
d. with significant transactions costs, resources will be inefficiently allocated
Explanation / Answer
Question 1 : Option d) is correct as there are three other components as well i.e. Personal consumption expenditure,Investments and Net Exports.
Question 2 : Option b) is correct as budget constraints represents various combiations of goods and services which one can buy given the income.
Question 3 : Option a) is correct i.e budget constraint shift outward but is parallel to original or itself.
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