The government can both set the efficient level of output in a market and maximize surplus by correcting for a negative externality by using:
A. a quota.
B. a tradable allowance.
C. a tariff.
D. a subsidy.
Answer: B
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For a person earning $75000, the marginal tax amount from 40,001 to $75000 is:
A. $5,000
B. $7,500
C. $8,750
D. $14,250
The opportunity cost of producing a good or service is the good or service that is foregone by choosing to produce another good with the same resources in a given period of time
a. True b. False Indicate whether the statement is true or false
Suppose the Congress and president decreased the maximum annual contributions limits to retirement accounts and at the same time reduced the budget deficit. What would happen to the interest rate?
a. It would decrease. b. It would increase. c. It would stay the same. d. It might do any of the above.
If scarcity didn't exist, neither would
A) rationing devices. B) competition. C) labor. D) capital. E) a and b