In order to borrow money to finance a deficit, the federal government
A. sells government securities.
B. must raise taxes.
C. negotiates with large banks.
D. cuts spending.
A. sells government securities.
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Which of the following parties benefits from an import quota but not from a tariff?
A) the foreign government B) the person with the right to import the good C) domestic producers D) domestic consumers E) the domestic government
Which of the following is not an important difference between privately-owned enterprises and government institutions?
A) Decision makers confront different sets of incentives. B) Different kinds of information are available to decision makers. C) Government has the generally acknowledged right to use coercion. D) Self-seeking motives are less characteristic of government employees.