Gary Becker's Criticism of Government Spending on Infrastructure as Part

question 101

Multiple Choice

Gary Becker's criticism of government spending on infrastructure as part of President Obama's stimulus plan was that:

• A) spending on infrastructure would not increase production in the economy.
• B) there is a conflict between where spending on infrastructure would benefit employment and where infrastructure is most needed.
• C) government spending on infrastructure is less effective in increasing production than an equal amount of private spending on infrastructure.
• D) government spending on infrastructure only increases demand, but tax cuts increase demand and supply.

Understand that the range is considered a weak measure of variability due to its dependency on only two observations.

Recognize the coefficient of variation as a vital measure of variability, especially in comparing data sets with vastly different means.

Understand the concept of standard deviation and its significance as a measure of dispersion that takes into account all data points.

Know that the standard deviation shares the same units as the original data set, reinforcing its direct relevance and applicability.

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Definitions:

Dividends

Funds distributed by a company to its shareholders, typically coming from the firm's profits.

Clientele Effect

The theory suggesting that changes in dividend policy can attract or repel specific groups of investors, affecting the stock price.

Dividends

Disbursements issued by a company to its shareholders, representing a share of the earnings distributed to its stock owners.

Residual

The amount remaining after the principal parts have been taken away or used up, often used in financial contexts.