Governments can impede economic growth for many reasons. Which of the following is not a major reason?
a. High taxes can reduce consumption & investment, and they can reduce the incentive to work.
b. Government projects may have relatively low marginal returns.
c. Governments may spend more than they earn in tax revenues.
d. The lack of government accountability to a bottom line could allow for wasteful spending
e. Regulation may damage production incentives.
.C
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When discussing rules that governments use to intervene in a market, we can take a ________ approach where we discuss what governments should do, or a ________ approach where we discuss what governments actually do
A) normative; positive B) positive; normative C) optimistic; cynical D) bipartisan; normative
Monopsonistic exploitation is
A) measured by the area above the supply curve but below the wage paid. B) the difference between the marginal revenue product of a worker and the wage received by the worker. C) measured by the height of the supply curve of labor. D) the cost to society from unions.