Crowding out is the idea that an increase in government spending may cause a reduction in private sector spending.
Answer the following statement true (T) or false (F)
True
Crowding out occurs when a reduction in private sector borrowing (and spending) is caused by increased government borrowing.
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The median voter theorem will be an accurate predictor of the outcome of elections
A) when a majority of voters have preferences very similar to those of the median voter. B) when a majority of voters have preferences very different from those of the median voter. C) regardless of whether preferences among voters are similar to or different from those of the median voter. D) only when voter turnout is very low.
José Conseco, then a major league baseball star who had just signed a very large contract, said, "I don't think it's what I'm worth. It's what the market holds, what the organizations are willing to pay a player." He was really talking about
A. the substitution effect. B. the income effect. C. the primary labor market. D. the secondary labor market. E. economic rent.