Which of the Following Is a Political Function of Government

question 248

Multiple Choice

Which of the following is a political function of government but is not a central economic function?

• A)determining who has a right to vote
• B)determining government-sponsored and government-inhibited goods
• C)providing a legal system to adjudicate property rights
• D)redistributing income from some individuals to others

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Definitions:

Menu Costs

The costs incurred by firms in order to change their prices, including costs related to printing new menus, re-tagging items, or advertising new prices.

Inflation-induced Tax Distortions

Discrepancies in the effective tax burden caused by inflation, which can lead to distorted investment and consumption decisions.

Shoeleather Costs

Shoeleather costs are the metaphorical costs of inflation, referring to the time and effort spent trying to avoid holding onto cash as it loses value.

Real Interest Rate

The rate of interest an investor expects to receive after allowing for inflation.