When the government provides a public good such as a highway,
a. society benefits without necessarily involving a reallocation of resources
b. only highway users benefit and that occurs without necessarily involving a reallocation of resources
c. it uses resources, but the benefits are so great there is no resource reallocation effect
d. it necessarily reallocates resources away from the production of other goods
e. it has the same resource allocation effect on the economy as a government transfer payment
D
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Economists would most likely suggest that advanced nations can best assist in the economic development of developing nations by:
A. Increasing the amount of military aid to strengthen the government's role in providing law and order B. Increasing trade barriers so that less developed nations will become more self-sufficient C. Reducing trade barriers and increasing the amount of private and public capital D. Decreasing the amounts of private capital or foreign aid to reduce the level of neocolonialism
The highest percentage of uses of health care funds in the U.S. for 2010 was
A. research. B. hospital care. C. home health care. D. nursing home care.