If a state government finances treatment facilities for alcoholics out of revenues from a tax on liquor, it is
a. basing its taxation on ability to pay
b. levying a proportional tax
c. able to afford fewer treatment facilities when liquor sales decrease
d. discouraging alcoholics from seeking treatment at government facilities
e. providing a service that the private sector cannot provide
C
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The major goal of social regulation is
A) a better quality of life through a less polluted environment, better working conditions, and safer and better products. B) to make sure that firms are not earning monopoly profits. C) to make sure that prices are kept low enough so that every person can purchase the good. D) to make sure that the firm produces at the socially optimal point of production.
When the investment is graphed as a function of real GDP
A) it graphs as a vertical straight line. B) it graphs as a 45-degree line starting at the indicated level of investment. C) it graphs as a negatively sloped line indicating the inverse relationship between interest rates and investment. D) it graphs as a horizontal straight line at the level of investment.