When decentralized governmental units operate independently and compete with each other, governments will attract residents and expand their tax base when
A) they discontinue desired government services in order to keep taxes low.
B) they increase their tax rates.
C) they provide residents with desired services at an attractive tax cost.
D) they provide residents with fewer government services.
C) they provide residents with desired services at an attractive tax cost.
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
If Mary invests $500 and receives yearly interest of $40, the rate of interest she is earning on her $500 must be
a. 18 percent b. 12.5 percent c. 10 percent d. 15 percent e. 8 percent
If a subsidy (going to producers) on a good is eliminated, this would
A. move its supply curve to the right. B. cause a movement along the supply curve to a (lower price, lower quantity) point. C. move its supply curve to the left. D. cause a movement along the supply curve to a (higher price, higher quantity) point.
Suppose 10 citizens each derive marginal benefit from traffic lights according to the function MB = 10 - Q. If traffic lights cost $10 each to produce, what is the efficient quantity of traffic lights?
A) 9 traffic lights B) 12 traffic lights C) 8 traffic lights D) 1 traffic light