As more politically directed spending leads to more rent-seeking activity,
a. the spending will increase GDP, but only if it is directed toward productive activity.
b. the spending will decrease GDP, but only if it is directed toward unproductive activity.
c. resources will be channeled toward unproductive activity and away from productive activity.
d. resources will be channeled toward productive activity and away from unproductive activity.
C
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A reduction in the minimum wage will tend to cause which of the following?
A) a reduction in poverty B) an increase in the number of workers employed C) an increase in the quantity supplied of labor D) a reduction in the quantity demanded of labor
If the government imposes a $3 tax in a market, the equilibrium price will rise by $3
a. True b. False Indicate whether the statement is true or false