Questions from General Economics

Q: According to Public Choice Theory, how could government regulation be doomed

According to Public Choice Theory, how could government regulation be doomed to failure?

Q: What are some examples of payments people must make for government goods

What are some examples of payments people must make for government goods or services based on the ability-to-pay principle?

Q: What are the general purposes of taxes? Answer:

What are the general purposes of taxes?

Q: If federal government wished to reduce the deficit to any significant degree

If federal government wished to reduce the deficit to any significant degree without raising taxes, where would the reduced spending likely to have to come from?

Q: How politically popular is it for government to reduce spending and/

How politically popular is it for government to reduce spending and/or to raise taxes?

Q: Consider this statement: “Because price equals longrun average cost and

Consider this statement: “Because price equals longrun average cost and profits are zero, a monopolistically competitive firm is efficient.” Do you agree or disagree? Explain.

Q: In practice do we have progressive, proportional, or regressive personal

In practice do we have progressive, proportional, or regressive personal income tax rate system?

Q: How could time lags associated with the implementation of fiscal policy destabilize

How could time lags associated with the implementation of fiscal policy destabilize the business cycle?

Q: How could deficit spending help offset the otherwise lower rates of economic

How could deficit spending help offset the otherwise lower rates of economic growth associated with a crowding-out effect?

Q: How could a greater fiscal deficit create a greater trade deficit?

How could a greater fiscal deficit create a greater trade deficit?