A government's debt is increased when it
A. balances is budget.
B. runs a surplus.
C. buys more bonds.
D. runs a deficit.
Answer: D
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A metal-stamping factory moves next to a day care center. Noise from the factory makes it impossible for the kids to nap. It would cost the factory $5 million to move; it would cost $1 million for the day care center to move. Sound insulation for the factory costs $1 million; insulation for the day care center costs $200,000 . The court determines that the day care center has the property right
What would be the optimal solution to this problem? a. The factory should install sound insulation because that is cheaper than moving. b. The factory should pay the day care center to move. c. The factory should buy insulation for the day care center. d. The day care center should buy its own insulation. e. The day care center should move.
When several hurricanes hit Florida in 2004, a number of local governments imposed price controls that prevented sellers from raising their prices for badly needed products like plywood and generators. In the areas where the controls were imposed, they resulted in
a. an expanded availability of these badly needed products. b. a reduced availability of these badly needed products. c. an increase in the speed with which people recovered from the hurricanes. d. a more efficient allocation of these goods for which price controls were in effect.
Capital Resources
What will be an ideal response?
The following data represent a personal income tax schedule. Answer the question on the basis of this information. Refer to the below table. As income increases, the average tax rate:
A. Increases
B. Decreases
C. Remains constant
D. Has no definite pattern