Wichita is building a convention center and financing it with revenues raised from a city hotel tax. Local politicians assert that the convention center is essentially free for Wichita residents because out-of-town visitors are paying for it
Someone who is practicing the economic way of thinking would disagree because
A) the hotel tax may lead to a decline in visits to Wichita.
B) they believe that Wichita does not need a new convention center.
C) the hotel tax may reduce commercial property values in the area.
D) there are other projects that could be undertaken with the tax funds.
E) the convention center may not pass a marginal cost-benefit test.
D) there are other projects that could be undertaken with the tax funds.
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In the above figure, the relationship between income and expenditures is
A) positive. B) negative. C) independent. D) random.
Under perfect capital mobility, monetary policy has the largest impact on the income under:
a. floating exchange rates. b. fixed exchange rates. c. dollarization. d. a currency union.
What price should a firm charge for a package of two shirts given a marginal cost of $2 and an inverse demand function P = 6 ? 2Q by the representative consumer?
A. $6 B. $8 C. $10 D. $2
Refer to the above diagram. A contractionary fiscal policy can best be represented by a:
A. shift in the aggregate demand curve from AD1 to AD2. B. movement along the aggregate demand curve. C. shift in the aggregate demand curve from AD1 to AD3. D. shift in the aggregate demand curve from AD3 to AD2.