A polluted river has 20 homes on it that rent for $1,000 each per month. Homes on a similar river that is not polluted rent for $2,000 each per month
The river is polluted because there are two factories on the river that dump polluted water in the river. Each factory could install a filter that would cost $5,000 each and would reduce the pollution in the water to a negligible level. The external cost in this problem is A) $20,000.
B) $5,000.
C) $10,000.
D) $30,000.
A
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Those who favor smaller government tend to do what in order to make it more difficult for politicians to increase government spending? List at least two methods
What will be an ideal response?
Which of the following U.S. taxes is the most consistent with the ability-to-pay principle?
a. The excise tax on gasoline. b. The federal income tax. c. State sales taxes. d. The Social Security payroll tax.
Indexing reduces the ability for relative price changes to allocate resources where they are more valuable
a. True b. False Indicate whether the statement is true or false
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________. 
A. Rising; A B. Falling; A; C C. Falling; B: C D. Rising; A; C