Consider a public good such as fire protection services. Rich people may benefit more than the poor from such a service because rich people stand to lose more from a fire that destroys property. In this case
A) the benefits-received principle may support the rich paying more taxes than the poor, but not the ability-to-pay principle.
B) the ability-to-pay principle may support the rich paying more taxes than the poor, but not the benefits-received principle.
C) neither the benefits-received nor the ability-to-pay principles may support the rich paying more taxes than the poor.
D) both the benefits-received and the ability-to-pay principles may support the rich paying more taxes than the poor.
D
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Which of the following could cause nominal GDP to increase, but real GDP to decrease?
A) The price level falls and the quantity of final goods and services produced falls. B) The price level falls and the quantity of final goods and services produced rises. C) The price level rises and the quantity of final goods and services produced falls. D) The price level rises and the quantity of final goods and services produced rises.
An economy that does not have interactions in trade or finance with other economies is referred to as
A) a closed economy. B) an open economy. C) a net foreign investment economy. D) a trade-balanced economy.
If two risky assets, A and B, have negative correlation, then when A's yield increases
A) B's yield increases. B) B's yield decreases. C) B's yield can increase or decrease. D) There is not enough information to determine what B's yield will do.
Suppose that for a monopolist, MR = MC = $10 and P = $15 at the profit-maximizing level of output. At this level of output, the firm
a. is earning a profit b. will shut down if AVC > $15 c. is making $5 profit on each unit sold d. will shut down if ATC > $15 e. is losing $5 per unit produced