Consider the Allocation of a Nation's Resources Between Additional Public-

question 81

Multiple Choice

Consider the allocation of a nation's resources between additional public- sector spending versus additional private spending.John Kenneth Galbraith argued that

• A)compared to public spending,private spending leads to more sustained long- run economic growth.
• B)compared to private spending,public spending leads to more sustained long- run economic growth.
• C)public sector spending is always subject to corruption and is therefore not as valuable as private spending.
• D)the marginal utility of an additional dollar's worth of spending on public goods is higher than an additional dollar's worth of spending on private goods.
• E)the value of the marginal dollar spent by government is less than the value of that dollar left in the hands of households or firms.

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Definitions:

Act for the Prevention of Frauds and Perjuries

Historical legislation which aimed at reducing fraud and perjury in legal agreements, emphasizing the importance of written contracts.

Promissory Estoppel

The legal enforcement of an otherwise unenforceable contract due to a party’s detrimental reliance on the contract.

Negligent Misrepresentation

A false statement of material fact made by a party who thinks it is true but who would have known the truth about the fact had he or she used reasonable care to discover or reveal it.

Statute of Frauds

A legal doctrine requiring certain contracts to be in writing and signed by the parties involved to be enforceable.