When services are provided and financed by local rather than higher levels of government and people can move freely among governmental units,
A) people will be able to vote only with their ballots.
B) people will be able to vote only with their feet.
C) people will be able to vote with their feet (choose combinations of taxation and government services more consistent with their preferences) as well as with their ballots.
D) local officials will have greater freedom to impose high taxes and provide lousy public services inefficiently.
C) people will be able to vote with their feet (choose combinations of taxation and government services more consistent with their preferences) as well as with their ballots.
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The use of commodity money
a. has a high opportunity cost. b. does not provide an adequate unit of account. c. creates a mutual coincidence of wants problem. d. creates inflation. e. All of the above.
Nonactivists argue against the use of discretionary monetary policy and rules-based monetary policy
Indicate whether the statement is true or false
Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV, QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. All else equal, a $10 increase in the price of satellite TV will cause the quantity of cable TV demanded to:
A. decrease by 3,000 households. B. increase by 3,000 households. C. decrease by 5,000 households. D. increase by 5,000 households.
An example of an import of a service in the U.S. balance of payments would be when
A) an U.S. resident purchases a Japanese stereo. B) a Norwegian traveling in the United States rides a trolley car in San Francisco. C) a U.S. resident buying insurance from a firm in Toronto. D) a U.S. firm purchases 100 shares of a Dutch firm.