Governments can impede economic growth for many reasons. Which of the following is not a major reason?
a. High taxes can reduce consumption & investment, and they can reduce the incentive to work.
b. Government projects may have relatively low marginal returns.
c. Governments may spend more than they earn in tax revenues.
d. The lack of government accountability to a bottom line could allow for wasteful spending
e. Regulation may damage production incentives.
Question 2
Which of the following is not a true statement about the foreign exchange market?
a. Trading for foreign exchange is conducted without interruption (24 hours a day) during the workweek.
b. Prices for foreign currencies are the usually same throughout the world.
c. Bid-ask-spreads are bigger in the wholesale than in the retail market for foreign exchange.
d. The wholesale volume surpasses the retail volume by a huge margin.
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