In Our Simple Macro Model with Government and Foreign Trade,the

question 73

Multiple Choice

In our simple macro model with government and foreign trade,the marginal propensity to consume out of disposable income is ________ whereas the marginal propensity to consume out of national income is ________.

• A)MPC; MPC(1 - t)
• B)MPC(1 - t); MPC
• C)MPC(1 - t)- m; MPC(1 - t)
• D)MPC; MPC(1 - t)- m
• E)MPC(1 - t); MPC(1 - t)- m

Analyze the special-interest effect and its impact on policy-making.

Understand the challenges related to providing public goods and dealing with the free-rider problem.

Identify and explain sources of government failure.

Describe the characteristics and provision challenges of public and quasi-public goods.

---

Definitions:

English Monarchy

A system of government in the United Kingdom and its predecessor states where a monarch (king or queen) is the head of state.

William Penn

An English Quaker leader and founder of the Province of Pennsylvania, the British North American colony that became the U.S. state of Pennsylvania.

Pennsylvania

A state located in the northeastern U.S., known for its diverse landscapes, rich history, and significant contributions to American politics, economy, and culture.

Delaware

The first state to ratify the U.S. Constitution, known as "The First State," located in the Mid-Atlantic region of the United States.