Two reasons for targeted government spending are to increase equity and stability
Indicate whether the statement is true or false
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The text uses traffic congestion as an example of
A) a surplus of automobiles. B) a negative externality. C) a good priced above equilibrium. D) an engineering rather than an economic problem.
The power of the supply and demand model lies in its ability
A) to generally predict how price and quantity will change with supply and demand shocks. B) to precisely predict the impact of government regulations on quantity and price. C) to precisely determine the difference between price ceilings and price floors. D) to generally predict how profit motive impacts the distribution of goods and services.
If personal income taxes and business taxes increase, then this will:
A. Increase aggregate demand and aggregate supply B. Decrease aggregate demand and aggregate supply C. Decrease aggregate demand and increase aggregate supply D. Increase aggregate demand and decrease aggregate supply
Refer to Scenario 1.2 below to answer the question(s) that follow.SCENARIO 1.2: A scientist wants to understand the relationship between automobile emissions and the level of global warming. The scientist collects data on the volume of automobile emissions and the levels of global warming over time. The scientist concludes that a 1% increase in automobile emissions causes a 0.0003% increase in average global temperatures. From this information he concludes that the automobile emissions are harmful to the environment and should be reduced to stop the increase in global temperatures.Refer to Scenario 1.2. The statement, "automobile emissions are harmful to the environment and should be reduced to stop the increase in global temperatures," is an example of
A. normative economics. B. the fallacy of logic. C. positive economics. D. marginal economics.