Which of the following assets is the least liquid?
A) money market mutual fund
B) stock
C) treasury bond
D) house
D
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Which of the following is NOT an example of physical capital?
A) a computer B) a lawn mower C) a dump truck D) a building E) a bond
The above figure depicts the market for video games. If the government imposed a $3 per game tax on sellers, what would be tax revenue?
A) less than $18 B) $18 C) more than $18 D) More information is needed to determine if the tax revenue is more than, less than, or equal to $18.
Which of the following is not a solution to the problem of negative externalities due to pollution?
a. create private property rights b. levy pollution taxes c. create obligatory controls d. subsidize the production of the goods e. establish strict limits on the amount of pollution allowed
Which of the following is a key difference between the economic activities of government and those of private firms?
A. Private firms face the constraint of scarcity; government does not. B. Government focuses primarily on equity; private firms focus only on efficiency. C. Private economic activities create externalities; government activities do not. D. Government has the legal right to force people to do things; private firms do not.