The Political Functions of Government Differ from the Economic Functions

question 41

Multiple Choice

The political functions of government differ from the economic functions of government in that

• A) the political functions relate to income distribution while the economic functions relate to the way exchange is carried out.
• B) the political functions are performed at the federal government while the economic functions are at the state and local government levels.
• C) the political functions involve elections and the court systems while the economic functions involve taxation and transfers.
• D) the President deals with the economic functions while Congress deals with the political functions.

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Definitions:

Marginal Product

It is the increase in output that results from a one-unit increase in the input, keeping all other inputs constant.

Average Product

The output per unit of a particular input, such as labor or capital, calculated by dividing total product by the quantity of input.

Average Product

The output produced per unit of input used, typically calculated by dividing total product by the quantity of input.

Marginal Product

The additional output gained by employing one more unit of a particular input, keeping other inputs constant.