If the tax cost of this proposed project is $600 per person, a majority vote will:
Answer the question on the basis of this table showing the marginal benefit a particular public project will provide to each of the three members of a community. No vote trading is allowed.
A. defeat this project and resources will be underallocated to it.
B. pass this project and resources will be allocated efficiently.
C. pass this project and resources will be overallocated to it.
D. pass this project and resources will be underallocated to it.
C. pass this project and resources will be overallocated to it.
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All else constant, all of the following would cause the demand curve for a good to shift except:
A) a change in the cost of producing the good. B) a change in the price of a related good. C) a change in consumer's incomes. D) a change in the number of buyers.
Last year you purchased 20 CDs at $12 a piece, 10 shirts at $15 each, and 5 sweaters at $30 each (total spending equals $540). This year you buy 18 CDs at $15 each, 10 shirts at $16 each, and 6 sweaters at $36 each (total spending equals $640)
If last year's index was 100, this year's index A) is 119.6. B) is 118.5. C) is 83.6. D) is 30.
Which of the following must be true in order to engage in advantageous international trade?
a. It must be producing at a point on its production possibilities frontier. b. It must be economically efficient. c. It must have a comparative advantage in producing one of the goods being traded. d. There must be no potential Pareto improvements available in the economy. e. It must have an absolute advantage in producing one good being traded.
The difference between M1 and M2 is given by