If education produces positive externalities, we would expect
a. the government to tax education.
b. the government to subsidize education.
c. people to realize the benefits, which would increase the demand for education.
d. colleges to relax admission requirements.
b
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Suppose that the supply of insulin is perfectly elastic and the demand for insulin perfectly inelastic. Then the result of an excise tax would be
A. a significant increase in government revenue and a significant decrease in the quantity consumed. B. a significant decrease in the quantity consumed with no change in government revenue. C. a significant increase in government revenue and no change in the quantity consumed. D. no increase in government revenue and no change in the quantity consumed.
The percentage of all sales contributed by the leading four or leading eight firms in an industry is known as
A) a horizontal merger. B) a vertical merger. C) economies to scale. D) the concentration ratio.
In reference to the federal income tax system, a tax bracket is
A) the income range within which a tax rate applies. B) the estimated amount of federal income tax firms withhold from their employees' paychecks. C) the formula the federal government uses to determine the dollar amount of the personal exemption and the amounts taxpayers are allowed for deductions from their incomes. D) used to determine the average tax rate.
During a recession, unemployment
a. increases b. decreases. c. is equal to the natural rate of unemployment. d. is frictional unemployment minus structural unemployment.