Some policymakers have proposed giving parents of children in poorly performing schools tax dollars to help send their children to private schools. This proposal is an example of
A) vouchers.
B) public provision.
C) external costs.
D) taxes.
E) correcting an externality using a government good.
A
You might also like to view...
Which of the following statements with respect to the monopolist is FALSE?
A) A monopolist can make higher profits if it can price discriminate. B) A monopoly tends to result in a lower quantity being sold than perfect competition does. C) Monopoly is a situation in which a single firm dominates. D) A monopoly arises in a situation with few barriers to entry into the marketplace.
If the cost of labor increases, the isocost line will
A) stay the same. B) shift outward in parallel fashion. C) rotate inward around the point where only capital is employed in production. D) shift inward in parallel fashion.
Economists assume that a perfectly competitive firm's objective is to maximize its
a. revenue b. quantity sold c. economic profit d. output price
If a drought reduced by 20 percent the quantity of wheat available for consumption, by how much would the price of wheat have to rise to clear the market if the price elasticity of demand was .25?
A) 4 percent B) 4.5 percent C) 5 percent D) 25 percent E) 80 percent