The figure above illustrates the gasoline market. There is no external benefit from gasoline. If a pollution tax equal to the marginal external cost is imposed on gasoline, then the quantity of gasoline produced and consumed equals
A) 0 gallons.
B) 5 million gallons.
C) 10 million gallons.
D) 20 million gallons.
E) None of the above answers is correct.
C
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Non-paying activities in economics are referred to as:
A) relief. B) leisure. C) free time. D) unemployment.
In recent years, U.S. exports have exceeded U.S. imports
Indicate whether the statement is true or false
Refer to the above table. The equilibrium real GDP is
A) $14 billion. B) $12 billion. C) $15 billion. D) $13 billion.
Given full-employment output = $2,800, equilibrium real GDP = $2,500, and MPS = 0.25, which of the following changes would most likely bring the economy to a full-employment level of real GDP?
a. $300 decrease in taxes. b. $75 increase in government spending. c. $75 decrease in taxes. d. $300 increase in government spending. e. $75 decrease in government spending.