An increase in subsidies and other government spending during a recession is likely to result in
a. an increase in rent-seeking activity.
b. an increase in productive projects and a reduction in unproductive projects.
c. a decrease in the level of future taxes.
d. greater reliance on profits and losses in the allocation of resources.
A
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In the market for books, initially there are no taxes on books. Books are normal goods. The government introduces a tax of $4 a book and, at the same time, people's income fall by $4,000 a year
Following these two changes, the equilibrium quantity of books A) decreases. B) increases. C) remains unchanged. D) either increases or decreases. We cannot say which.
With which choice are you more likely to avoid Bid-rigging cartels?
a. Holding English auctions b. Holding sealed-bid auctions c. Holding oral auctions d. All of the above
The EEC currently includes all of the following countries except
a. Greece b. Britain c. Iceland d. Russia e. Belgium
When the supply curve of land is upward sloping and intersects the demand curve at $30 per acre, then the last acre brought into production receives
a. $30 in land rent b. $0 in land rent c. average land rent of somewhere between $0 and $30, depending on the price of land d. land rent equal to the price of an acre of land e. land rent greater than $30 because the last acre is located to the right (in the land market graph) of the intersection of the demand and supply curves