In a simple macroeconomic model, only one component of expenditures is allowed to change:
A. investment.
B. consumption.
C. net exports.
D. government spending.
E. transfer payments.
Answer: B
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When dealing with negative externalities, government action is required
A) only if transactions cost are low. B) for any bargain to be successful. C) only in environmental disputes. D) only if transactions costs preclude bargaining between polluter and victim.
What type of income tax is reflected in the table above?
A) regressive income tax B) proportional income tax C) progressive income tax D) negative income tax
Along with changes in the level of economic activity, measured by GDP, what other economic variable tends to rise and fall as a consequence?
a. precipitation b. regulation c. circulation d. unemployment
Does the presence in the real world of intraindustry trade prove or disprove the classical or Heckscher-Ohlin models? Explain
What will be an ideal response?