A tax cut can best be characterized as
A. Either fiscal or supply-side policy.
B. Fiscal policy only.
C. Monetary policy only.
D. Supply-side policy only.
Answer: A
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The U.S. system of resource ownership
a. is pure capitalism b. excludes any state ownership of resources c. includes government restrictions on the use of privately owned resources d. is designed to eliminate the problem of scarce resources e. excludes any communal ownership
According to the Coase theorem, there will be an efficient solution to the problem of toxic waste: a. if the creator of the toxic waste is assigned the property right and the bargaining costs are high. b. if the victim of toxic waste is assigned the property right and the bargaining costs are high. c. regardless of which party is assigned the property right if bargaining costs are small
d. if the property rights are shared equally between the creator and the victim of the toxic waste.
Each citizen in a small town suffers 5 units of irritation for each bushel of leaves burned in the town. The charge for hauling a bushel of leaves to the land fill is a fee equal to 20 units of irritation. There are 25 people in the town, each of whom minimizes personal irritation and has 10 bushels of leaves. What is the marginal cost to society when a bushel of leaves is burned?
What will be an ideal response?
The rate at which a consumer is WILLING to substitute one good for another is measured by
A. the slope of the tangent to the indifference curve. B. the consumer's real income. C. the slope of the budget line. D. the corner solution on the Y axis.