Contractionary fiscal policy involves decreasing government purchases or increasing taxes
Indicate whether the statement is true or false
TRUE
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As a percentage of total federal revenues, the individual income tax has _____
a. increased substantially since 1960 b. declined substantially since 1960 c. increased slightly since 1960 d. declined slightly since 1960
If demand increases in a perfectly competitive market, then in the short run supply will:
A. either increase or decrease. B. increase. C. not change. D. decrease.
Recall the Application about determining the optimal level of methane abatement to answer the following question(s).Recall the Application. The EPA has estimated the cost of methane recovery at different recovery levels. Given those costs, the efficient level of methane recovery:
A. depends on the estimate of the marginal benefit of methane recovery. B. is zero because the costs exceed the benefits. C. will increase if scientists determine that methane is not as harmful as it is currently thought to be. D. will include only recovery from landfills and coal mines, but not from natural gas distribution.
Public utilities are the classic examples of
A. industries protected by patents. B. industries owning a scarce factor of production. C. natural monopolies. D. industries with network effects.