If the government's provision of a subsidy is too small to counteract the entire effect of a positive externality, the:
A. total surplus will be maximized, but the outcome will be inefficient.
B. quantity consumed will still be too high.
C. quantity consumed will still be too low.
D. total surplus will not be maximized, but the outcome will be efficient.
Answer: C
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How many Federal Reserve districts are there?
A) 1 B) 2 C) 12 D) 50
The primary source of funds for finance companies is ________
A) commercial paper B) deposits C) securities D) the central bank
Firms are willing to change the aggregate quantity of output supplied based on price in:
A. the short run only. B. the long run only. C. both the short and long run. D. Price does not affect the quantity that firms supply.
The average tax rate is calculated as
A) total income divided by the total tax paid.
B) the change in income divided by the change in total tax paid.
C) total tax paid divided by total income.
D) the change in total tax paid divided by the change in income.