21. Government can cover a budget deficit by: a. raising carbon tax rates b. Increasing money supply c. borrowing via the financial markets d. deregulating natural monopolies that are inefficient and consume taxpayer funds
21. Government can cover a budget deficit by: a. raising carbon tax rates b. Increasing money supply c. borrowing via the financial markets d. deregulating natural monopolies that are inefficient and consume taxpayer funds
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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21. Government can cover a budget deficit by: a. raising carbon tax rates
b. Increasing money supply
c. borrowing via the financial markets
d. deregulating natural monopolies that are inefficient and consume taxpayer funds
22. If South Africa’s economy achieves allocative efficiency , it implies that:
a. X-inefficiency must be Pareto optimal
b. Economic inefficiency in consumption must occur such that no allocation of commodities can decrease the utility of either of three consumers
c. producers and consumers achieve disequilibrium simultaneously
d. the economy is operating at a point on its contract curve
23. Which of the following statements is correct?
a. All economic efficiencies other than allocative inefficiency are X-efficiency.
b. Allocative inefficiency refers to a situation where resources are allocated efficiently c. X-inefficiency is maximised when resourced are allocated
d. X-inefficiency covers economic inefficiencies that are allocatively inefficient
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