One goal of political action committees is to
a. encourage people to become more active in politics
b. engage in rent seeking
c. help raise funds for government agencies
d. evade taxes
e. make it easier for legislators to accept the median voter model
B
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Suppose that a firm spends $200,000 to build a factory in 2012 that is expected to have a life of 10 years. As a result, GDP in 2012 will increase by:
a. $20,000 b. $200,000 c. You need to know the selling price of the factory to answer this question. d. It depends upon the tax law regarding depreciation.
If a country begins to import more of a commodity, one can normally expect the price of the commodity to
A. remain unchanged in that nation. B. rise and then fall below where it was originally. C. rise in that nation. D. drop in that nation.