Refer to the figure below. This graph describes a good that:
A. the government should subsidize.
B. generates negative externalities.
C. should be banned.
D. generates positive externalities.
Answer: B
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Suppose the government of a town of 2,000 people implements a tax on each of its 2,000 citizens to raise $1,000 for a sculpture that will be placed in the common area of a 5-person neighborhood
Each of the 5 people in the small neighborhood will receive $120 in benefits from the sculpture. This tax is likely to A) generate a great deal of opposition from taxpayers. B) generate a great deal of opposition from the 5 people in the affected neighborhood. C) generate little opposition from a majority of its taxpayers. D) generate the desirable social outcome.
When shopping the consumer is interested in absolute prices
Indicate whether the statement is true or false
If the interest rate is 8 percent, the present value of $750 to be received two years from now is
a. $750. b. $886.10. c. $643. d. $738.14.
An increase in the price level shifts the money demand curve to the left, causing interest rates to increase
a. True b. False Indicate whether the statement is true or false