Lower personal income taxes
A) decrease disposable income. B) decrease aggregate demand.
C) increase transfer payments. D) increase aggregate demand.
D
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Suppose you were told that Botswana had few skilled workers, a primitive banking system, and an inefficient and limited electric power industry. You would know that the person was describing was Botswana's problem with
a. its economic infrastructure b. political stability c. its agricultural sector d. its traditional values e. poverty
Answer the following statement(s) true (T) or false (F)
1. To meet its emission reduction targets under the Kyoto Protocol, the European Union developed and instituted a greenhouse gas (GHG) allowance trading program. 2. In the United States, there is a federally enforced greenhouse gas (GHG) allowance trading program. 3. The first mandatory cap-and-trade program launched in the United States was the one established by the Western Climate Initiative (WCI). 4. In the market for fossil-fuel-based electricity, too many resources are allocated to production because the associated MSC is above the MPC. 5. The gasoline tax is the most effective type of a product charge to reduce carbon dioxide emissions.
An income effect comes about because a price reduction of one product increases a consumer's real income.
Answer the following statement true (T) or false (F)
If, in a competitive market, marginal benefit is less than marginal cost
A) the net benefit to consumers from participating in the market is less than the net benefit to producers. B) the government must force producers to raise prices in order to achieve economic efficiency. C) the output is greater than the equilibrium quantity. D) the output is less than the equilibrium quantity.