All of the following are major sources for financing public education EXCEPT
A) income taxes.
B) sales taxes.
C) property taxes.
D) government fees.
Answer: D
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An increase in the level of government price supports for wheat will not make wheat farming more profitable because
A) by definition government actions cannot affect profits. B) it raises the cost of growing wheat as well as the revenue. C) profit is the consequence of certainty and government policies are inherently uncertain. D) the demand for wheat is inelastic. E) wheat farmers are price takers, not price searchers.
The gains from consumer surplus and producer surplus occur when
A. the government supplies the good instead of firms. B. both consumers and producers engage in voluntary exchange. C. producers are willing to provide a good but consumers are not willing to pay for it. D. consumers are willing to buy a good but producers are not willing to provide it.
The budget constraint shows the
A. amount of a good the consumer will buy at various prices. B. possible combinations of goods that can be purchased with a specified income. C. changes in consumption of goods that a consumer makes when his income increases. D. combinations of goods that generate the same amount of total satisfaction.
The two main causes of an asset price bubble are:
A. herding and budget deficits. B. herding and budget surpluses. C. budget surpluses and leverage. D. herding and leverage.