Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 18, Problem 4QP
To determine
Acceptability of the statement.
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Students have asked these similar questions
Would you kindly explain the fallacy or mistake in this type of thinking.
Identify the fallacy or mistake in thinking in each of the following statements:
a. Lowering taxes always lowers government revenues.
b. Whenever there is a economic expansion, imports increase.
Which of the below statements does NOT fit in with the ideas expressed by Charles Wheelan in chapter 3 about the "Government and the Economy" of Naked Economics?
Group of answer choices
The private sector is the engine of growth, but it is the government that roots out fraud, makes transactions and contracts binding, sorts out property rights, and settles disputes.
The more sophisticated our economy becomes the more sophisticated our government institutions need to be.
Taxpayers know better what to do with their money than the government does.
Should the United States government attempt to operate under a balanced budget? Why, or why not?
Chapter 18 Solutions
Economics (MindTap Course List)
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- When the economy is in recession, government revenue falls due to a falling tax base. Therefore the proper role of government should be to increase taxes and cut spending so as to balance the Federal budget. Do you agree? Why?arrow_forwardDescribe some fiscal policies that governments are presently using to counter the impact of coronavirus on an economy. Discuss if these policies are more, or less likely, to deliver long-term social equity. Could these policies be used to create more social security/welfare; discuss and compare any negative consequences that these policies could have on an economy and critique the various ways the government could minimise or remove such negative consequences?arrow_forwardIf government increases spending and wants to maintain a balanced budget, it shouldarrow_forward
- You are given data on the following variables in an economy: Government spending 300, Total Investment 200, Net Exports 50, Total Tax Revenue 250, Income tax rate 10%. How much income should been arned by the businesses and the individuals in order for the government to reach a balanced budget?arrow_forwardIn the budget presented by the government, far reaching tax rebates are provided to all classes of tax payers. A researcher therefore conducts a survey to examine whether these tax reductions have led to a change in the consumption patterns of various social classes in the country. What kind of study would this fall under? Explain your answer.arrow_forwardWhat are monetary, fiscal and growth and supply side policies. How can a government utilize fiscal policy to stimulate an economy that is in a recession, or in a debt crisis? In your answer outline two (2) challenges the government may face implementing a fiscal policy measure.arrow_forward
- Why does the budget require a forecast of the economy? Under what circumstances would actual government spending and tax revenue fail to match the budget as approved? kindly explain answers in a simpler way.arrow_forwardDuring an economic _______, there is a decline in economic activity, including falling GDP, rising unemployment, and reduced consumer spending. To combat this, governments often implement _______ fiscal policies to stimulate the economy. A) expansion, contractionaryB) downturn, expansionaryC) boom, contractionaryD) recession, expansionary.arrow_forwardWhich of the following best describes a fiscal policy tool? 1. Government spending II. Government taxes III. Interest rates. IV. Bank lending V. Financial capital markets I and II I and VI III, IV, and Varrow_forward
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