If the primary goal in implementing a tax is to maximize efficiency and minimize deadweight loss, the government should impose a(n):
A. income tax.
B. lump sum tax.
C. sin tax.
D. proportional tax.
B. lump sum tax.
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If the prices of goods and services were expressed in terms of coconuts, then coconuts would be serving as a
A) medium of exchange. B) store of value. C) standard of value. D) fiat money.
The table above shows the marginal costs and marginal benefits of college education. If the market for college education is perfectly competitive and unregulated, how many students are enrolled in college?
A) 12 million B) 20 million C) 16 million D) 24 million
Measuring unemployment is the job of the Bureau of Labor Statistics
a. True b. False Indicate whether the statement is true or false
When negative externalities exist, a voluntary agreement can be negotiated. Which of the following statements is TRUE?
A) Voluntary agreements usually do not work since the owner has no incentive to negotiate. B) Transactions costs must be low relative to the expected benefits of reaching an agreement. C) Voluntary agreements are difficult to negotiate because they usually involve government intervention. D) Voluntary agreements always leave the owner worse off.