The invisible hand principle indicates that competitive markets can help promote the efficient use of resources
What will be an ideal response?
even when each market participant cares only about their own self interest rather than about the overall efficiency of resource use.
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The network effect in the TV broadcasting industry results in
A. a positive market feedback between the number of advertisers and the number of TV channels. B. a negative market feedback between the number of advertisers and the size of TV audience. C. a negative market feedback between the number of advertisers and the number of TV channels. D. a positive market feedback between the number of advertisers and the size of TV audience.
Many people have argued that an income tax should be "marriage neutral," that is, two people should pay the same total tax whether they are married or they are single
Suppose Amanda earns nothing, Ben earns $60,000, and Cathy and Dylan each earn $30,000 . They are all single. a. Amanda pays no tax because she has no income. If they live in a country that has a progressive income tax, which will be higher: the tax that Ben pays or the sum of the taxes Cathy and Dylan pay? b. Amanda marries Ben and Cathy marries Dylan. This country taxes married couples based on a family's total income. Show that the newlyweds Amanda and Ben will pay the same tax as Cathy and Dylan's family. c. Is the income tax in this country marriage neutral?
A corporation issues a three year bond with a coupon of $50 and a face value of $1000. Immediately after being issued, market interest rates decline to 4%. What is the price of the bond? Report your answer to the nearest dollar
What will be an ideal response?
Which of the following are mentioned as forces of the new growth theory that influence economic growth? I. Technology II. Research III. Innovations
A) I only B) I and II only C) I and III only D) II and III only E) I, II, and III