B) provides goods that have no resale value. C) keeps secrets about what it produces.
D) goods are generally not sold or produced in easily measurable units. Ans: d
9. Economists who study the role of government in the market A) agree mostly on the role that the government should play.
B) study for market problems that the government might help solve. C) find that supply and demand graphs never work for the government. D) do none of the above. Ans: b
10. Economics
A) is all about making money.B) has nothing to do with money.
C) is the study of unlimited wants but limited resources.D) has no “real world” relevance. Ans: c 11. Taxes
A) are mandatory payments.B) are necessary for financing government expenditures.
C) do not directly relate to the benefit of government goods and services received.D) are all of the above. Ans: d
12. For the government to provide goods and services, citizens A) have to come to an agreement about how much is needed. B) have to agree on a method of financing.
C) need to be informed about the opportunity costs.D) must do all of the above. Ans: d
13. Education is
A) generally financed at the state and local level.B) too expensive for the federal government. C) generally financed at the federal level.D) financed on a voluntary basis. Ans: a 14. Politics
A) play no role in public finance.B) influence government decisions.
C) have to be factored into economic decision making.D) do all of the above. Ans: d
15. Individuals
A) are too small to matter in macroeconomic decision making. B) need to participate in a democracy.
C) make up the government.D) a and b.E) b and c. Ans: e
16. The unified budget isA) a budget that includes all nations
B) a document which itemizes all the federal government’s expenditures and revenues. C) a document that accounts for all spending by states.D) none of the above. Ans: b
17. In 2007, the federal budget was almost A) 1 million pages longB) 17 pages long C) 1,300 pages longD) 500 pages long. Ans: c