Deflation refers to unemployment accompanied by severe inflation
a. True
b. False
Indicate whether the statement is true or false
False
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Since 1940 the percentage of elementary and secondary educational expenditures financed by local governments _____
a. declined by around 10 percentage points b. increased by around 10 percentage points c. increased by around 5 percentage points d. declined by around 15 percentage points
John raises bees to pollinate his apple trees. One of the bees just stung him. This is a(n)
A) private cost. B) social cost. C) internality. D) common property.
Which of the following would lead the Fed to increase the money supply under an interest rate rule?
a. an unexplained decrease of money demand b. an increase in taxes c. a decrease in spending that caused the money demand curve to decrease d. an increase in spending that caused the money demand curve to increase e. a decrease in government spending
There are ten states in the democratic nation of Katlandia, and each state has ten thousand residents. Although incomes vary, each Katlandian pays a tax equal to the total cost of all government projects divided by the number of residents in the country. Currently, two states each have one army base. An army base adds $2 million to a state's local economy each year. In addition, in terms of increased security, the annual marginal benefit to Katlandia of having an additional army base is shown below. The total cost of an army base is $8 million per year.
The marginal benefit of adding a third army base equals the local marginal benefit of $2 million plus
the marginal benefit to Katlandia of ________. A. $22.5 million B. $0 C. $1 million D. $3 million