Which of these is not true a government uses its

9. Which of these is not true?
a. Government uses its powers of coercion and force to collect taxes
b. Government uses its powers of coercion and force to protect rights
c. Government uses its powers of coercion and force to violate rights
*d. Government uses its powers of coercion and force only to improve the general welfare
10. In his classic treatise on public finance, Richard Musgrave says the economic activities of the
state can be broken down into _____.
11. The government protects rights in a market economy by providing _____.
12. Which of the following may be seen as an economic basis for government role in the economy?

*d. all of the above
13. Which of the following emphasizes incentives and tax cuts as a means of increasing economic
growth?
a) real-business cycle theory
b) economic efficiency
*c) supply-side economics
d) demand-side economics
14. Which of the following refers to the use of taxes and public expenditures to help dampen the swings
associated with the business cycle?
15. Which of the following is not part of Cummings theories on role of government in an economy?
16. ______ requires the government to abstain from involvement in anything that will affect the economy.
17. _______ requires the government to regulate the economy using fiscal policy.
*a) Keynesian economics
b) Monetarism
c) Laissez faire economics
d) None of the above
18. Supply-side economics requires government to
19. _____ indicates that variation in the money supply has major influences on national output in the short
run and the price level of goods and services over longer periods.