The excise tax on gasoline is

A. a direct tax.
B. an indirect tax.
C. both a direct tax and an indirect tax.
D. neither a direct tax nor an indirect tax.


B. an indirect tax.

Economics

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The consumption function shows that when disposable income increases by one dollar, consumption expenditure

A) does not change. B) increases by more than a dollar. C) increases by one dollar. D) decreases by less than a dollar. E) increases by less than a dollar.

Economics

Suppose that the government is trying to decide between allocating its resources to build more dams or to build more freeways

In terms of forgone dams, as more freeways are constructed, the marginal benefit of additional freeways ________ and the marginal cost of additional freeways ________. A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases

Economics

If the spending multiplier equals 5 and equilibrium income is $2 billion below potential GDP, then _____ to reach the potential real GDP level

a. total spending needs to increase by $0.1 billion b. nominal GDP needs to increase by $1.2 billion c. total spending needs to decrease by $6 billion d. nominal GDP needs to decrease by $12 billion e. total spending needs to increase by $0.4 billion

Economics

A benefit that accrues to people other than the buyer of a good is known as ________ benefit

A) an internal B) an external C) a marginal D) a total E) a subsidized

Economics