An economist might argue that U.S. national defense should be funded through tax revenues because:
a. U.S. citizens are not very patriotic
b. the government is always a more efficient provider of goods than the private market.
c. the government always seeks to act benevolently on behalf of its citizens.
d. individuals who refuse to contribute to a national defense fund cannot be excluded from benefiting from national defense.
d
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If the MPC equals 0.80 then:
a. the MPS equals 1.20. b. the multiplier equals 0.20. c. the multiplier equals 1 divided by 0.80. d. the multiplier equals 5. e. none of these.
A construction company has built 30 houses so far this year at a total cost to the company of $7.5 million. If the company builds a 31st house, its total cost will increase to $7.76 million. Which of the following statements is correct?
a. For the first 30 houses, the average cost per house was $250,000. b. The marginal cost of the 31st house, if it is built, will be $260,000. c. If the company can experience a marginal benefit of $275,000 by building the 31st house, then the company should build it. d. All of the above are correct.
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.
What are the benefits of using a pollution tax rather than a command-and-control system to internalize an externality?
What will be an ideal response?