Refer to the above figures. A unit tax of $2 has been levied on a good. Which of the panels depict the effect of the taxes?
A. Panel 1
B. Panel 2
C. Panel 3
D. None of the diagrams reflect the effect of the tax.
Answer: A
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Which of the following is not an important difference between privately-owned enterprises and government institutions?
A) Decision makers confront different sets of incentives. B) Different kinds of information are available to decision makers. C) Government has the generally acknowledged right to use coercion. D) Self-seeking motives are less characteristic of government employees.
If the value of exports equals $6.5 billion and the value of imports equals $8.0 billion in a year, then:
a. together imports and exports add $1.5 billion to the gross domestic product (GDP). b. together exports and imports add $6.5 billion to the gross domestic product (GDP). c. together exports and imports reduce the gross domestic product (GDP) by 1.5 billion. d. together exports and imports reduce the gross domestic product (GDP) by 1.5 billion. e. together exports and imports add nothing to the gross domestic product (GDP).
Briefly discuss the shortcomings of environmental command-and-control regulations
What monetary policy should be implemented to correct an inflationary economy?
(A) Easy monetary policy (B) Money creation policy (C) Tight monetary policy (D) Laissez faire policy