If activists successfully lobbied government to force firms to produce more output than they normally would in a perfectly competitive market,
A) consumer surplus would decline.
B) producer surplus would increase.
C) taxation would solve the problem.
D) total surplus in the market would decline.
D
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Which of the following "factors of production" is included in the neoclassical growth theory?
A) skills and education of the workforce B) cultural attitudes toward work C) effectiveness of the legal system in protecting property rights D) labor measured in units of effective labor E) all of the above
After the terrorist attacks on September 11, 2001, governments within the United States raised expenditures to increase security at airports. These purchases of goods and services are
a. not included in GDP since they do not represent production. b. not included in GDP since the government collects taxes to pay for them. c. included in GDP since government expenditures on goods and services are included in GDP. d. included in GDP only to the extent that the federal government, rather than state or local governments, paid for them.