Which of the following is a disadvantage of government provision of a public good such as national defense? (i) The government does not know the exact willingness of consumers to pay for the public good. (ii) The free-rider problem is more likely to occur when the government provides a public good than when the private sector provides a public good. (iii) Taxpayers do not agree on the optimal
quantity of the public good that the government should provide.
a. (i) only
b. (i) and (ii) only
c. (i) and (iii) only
d. (i), (ii), and (iii)
c
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Using the data in the table above, gross domestic product equals
A) $1,920. B) $1,940. C) $2,150. D) $2,400.
Oil prices have risen temporarily, due to political uncertainty in the Middle East. An advisor to the Fed suggests, "Higher oil prices reduce aggregate demand. To offset this we must increase the money supply
Then the price level won't need to adjust to restore equilibrium, and we'll prevent a recession." Analyze this statement using the IS—LM model.
The demand curve is given by:
QD = 5000 - 10 P Find equations for: a. Total revenue b. Marginal revenue
Which of the following is an example of a progressive tax?
A. A local sales tax. B. An excise tax. C. The federal income tax. D. Social Security payroll tax.