Favorable expectations about future sales will cause higher investment, ceteris paribus.
Answer the following statement true (T) or false (F)
True
Businesses will be more inclined to invest when it seems likely to pay off financially.
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The above figure shows the market for blouses. The government decides to impose the sales tax on sellers, as shown in the figure. What is the deadweight loss?
A) $10,000 B) $20,000 C) $30,000 D) $40,000
The table above gives information on the marginal perceived private benefit and marginal social benefit associated with vaccination against varicella (chicken pox)
If the marginal cost of a varicella vaccination is $10, to achieve an efficient quantity of vaccinations, the government could provide a subsidy of A) $4 per vaccination. B) $3 per vaccination. C) $2 per vaccination D) $1 per vaccination.
Which of the following scenarios would support the theory of public choice?
A. A college president eliminates wasteful departments and programs even though this will shorten her tenure and her political future. B. The president of Colombia goes after drug traffickers despite death threats and the offer of bribes that could make him a rich man. C. The governor of the state vetoes a highway bill even though the highway would enhance the value of property he or she owns. D. The local police chief fails to give the mayor a speeding ticket because the mayor might fire him.
Which of these questions does aggregate demand help us answer?I.What determines the total amount of our output that individuals, firms, governments and foreigners want to buy?II.What is the economy's long-run real Gross Domestic Product (GDP)?III.What determines the economy's equilibrium price level?
A. I only B. I and II C. II and III D. I and III