Carefully define the two categories of saving in the economy
What will be an ideal response?
There are two categories of saving in the economy: private saving by households and public saving by the government. Private saving is what is left of income after consumption expenditures and income taxes. Public saving is the amount of tax revenue that the government collects minus government expenditures and transfer payments.
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The optimal combination of goods for a consumer to purchase is shown by
A. any intersection of the indifference curve and the budget line. B. the point where the budget line touches the vertical axis. C. a point of tangency between the budget line and the indifference curve. D. the point at which the indifference curve parallels the horizontal axis. E. the intersection of two indifference curves.
The excess burden of a tax is:
a. the amount by which the price of a good increases. b. the loss of consumer and producer surplus that is not transferred to the government. c. the amount by which a person's after-tax income decreases as a result of the new tax. d. the welfare costs to firms forced to leave the market due to an inward shift of the demand curve.
An increase in the selling price of the tires that Jim produces will increase the demand for Jim's labor
a. True b. False
The total costs of regulation
A. are paid entirely by the regulated industries. B. are much higher than just the explicit government outlays to fund the administration of various regulations. C. include increased taxes and increased prices of the products being regulated. D. are paid entirely by the consumers of regulated industries.