According to Professor Baotai Wang who examined the crowding out phenomenon in Canada between 1961-2000, as discussed in the Case in Point, which of the following categories of government expenditures are most likely to lead to crowding out?
A) expenditures for health and education
B) expenditures for infrastructure and capital
C) expenditures for the protection of persons and property, including defense spending
D) expenditures for government and social services
Answer: B) expenditures for infrastructure and capital
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Refer to the below table. If firm A chooses its dominant strategy and firm B chooses a strategy that is not dominant, then the payoffs will be
Answer the question based on the following payoff matrix for a duopoly in which the numbers indicate the profit from following either an international strategy or a national strategy.
A. $3M for both firms.
B. $17M for both firms.
C. $15 for firm A and $5 for firm B.
D. $5 for firm A and $15 for firm B.
If the government wishes to maintain a balanced budget during a recession, it must
A. increase taxes, decrease transfer payments, and/or decrease government spending. B. decrease taxes, decrease government spending, and/or decrease transfer payments. C. decrease taxes, increase transfer payments, and/or decrease government spending. D. increase taxes, increase government spending, and/or increase transfer payments.