The cost incurred when the government collects taxes and uses resources to provide goods and services include:
a. the opportunity cost of the resources used
b. the excess burden of the tax
c. both of the above
d. neither of the above
Answer: c. both of the above
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Explain what economists mean by rational choice and think of three choices that you've made today that are rational
What will be an ideal response?
What is the best definition of “inflationary bias” in this context?
Read the following passage and then answer the question that follows. Since 1995, the Bureau of Labor Statistics (BLS) has been eliminating or reducing biases in the Consumer Price Index (CPI). Many economists believe that the BLS improvements have cut inflationary bias in half, and it is now estimated to be less than 1 percentage point per year. a. the tendency to believe that inflation is beneficial to the economy b. the tendency to promote policies that cause a positive inflation rate c. the tendency to overstate the rate of inflation d. the tendency of the members of an economy to push prices up
The perceived central economic problem associated with the U.S. health care system is:
A. too many frivolous malpractice lawsuits. B. an overabundance of scanning machines. C. an overallocation of resources to the system. D. that workers lose their insurance when they lose their jobs.
In monopolistic competition, the entry of new firms will cause all of the following to happen except
A. Long-run economic profits will be zero. B. The industry marginal cost curve will shift to the right. C. The industry cost curves will shift to the left. D. The firm's demand curve will shift to the left.