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

question 33

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)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.
• B)public sector spending is always subject to corruption and is therefore not as valuable as private spending.
• C)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.
• D)compared to public spending,private spending leads to more sustained long-run economic growth.
• E)compared to private spending,public spending leads to more sustained long-run economic growth.

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Definitions:

Normal Distribution

A statistical distribution where the data forms a symmetrical bell-shaped curve, with the mean, median, and mode all equal and in the center.

Standard Normal

A special case of the normal distribution where the mean is 0 and the standard deviation is 1.

10th Percentile

The value below which 10% of observations in a data set fall.

Z Distribution

A normal distribution with a mean of zero and a standard deviation of one, also known as a standard normal distribution.