List the three most important expenditure programs of the federal government. How do they differ from the three most important expenditure programs of state and local governments? Explain why it makes more sense for the federal government to purchase "national defense" rather than state governments
The three most important expenditure programs of the federal government are income security, health, and national defense. The three most important expenditure programs of state and local government are education, health, and public order and safety. It makes sense for the federal government to purchase national defense because national defense is a public good; as such, the federal government can minimize the free-rider problem among states.
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Dumping occurs when a firm
A) sells too much of a good in a foreign country. B) sells in a foreign country at prices that are below fair value. C) sells in its home market at prices that are below the average price charged by its competitors. D) sells in a foreign market at prices that are below the prices charged by firms based in the foreign market. E) charges more than a fair price.
In the long run, an economy's production of goods and services depends on its supply of a. labor, natural resources, capital, and available technology. b. labor, natural resources, and capital only
c. labor, and natural resources only. d. labor only.