When isolating the substitution effect of a change in an individual’s budget constraint, _____ is held constant. a. utility b. budget c. income d. consumption ANSWER c
Date: September 9th, 2020
If an individual’s budget constraint shifts, the individual’s changes in consumption can be broken down into _____ and _____ effects. a. budget; consumption b. income; substitution c. utility; indifference d. wealth; savings ANSWER b
Date: September 9th, 2020
For goods on which a relatively small portion of income is expended, _____. a. income effects will be small relative to substitution effects b. income effects will be large relative to substitution effects c. income effects will be about the same as substitution effects d. there will be no income effects. ANSWER a
Date: September 9th, 2020
In a representative democracy, some responsibility for government extends to all citizens. a. True b. False Indicate whether the statement is true or false ANSWER TRUE
Date: September 9th, 2020
Markets do not always allocate resources efficiently, however, government always does. a. True b. False ANSWER b
Date: September 9th, 2020
U.S Postal Service spending is generally not included in total government expenditures. a. True b. False ANSWER a
Date: September 9th, 2020
Federal government expenditures account for more than two-thirds of the money spent in the public sector. a. True b. False ANSWER b
Date: September 9th, 2020
The deficit is financed through new taxes. a. True b. False ANSWER b
Date: September 9th, 2020
Social insurance taxes and individual income taxes comprise more than 80 percent of federal revenues. a. True b. False ANSWER a
Date: September 9th, 2020
State and local governments were smaller than the federal government in 1900. a. True b. False ANSWER b
Date: September 9th, 2020
