Instruments that can be used to control overuse of a common resource include
A. privatizing the resource.
B. taxes.
C. standards.
D. all of the above
Answer: D
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What are the costs of inflation? Briefly explain each
What will be an ideal response?
Which of the following factors did not contribute to the federal budget surpluses in the 1990s?
a. Higher taxes on the rich b. More federal government spending discipline c. Market globalization d. Slower consumer spending e. Rising business optimism based on technological innovation
Taxes create deadweight losses because they
a. reduce costs for firms. b. distort incentives. c. cause prices to decrease. d. create revenue for the government.
The rate of return that households expect on their savings is determined by:
A) exchange rates. B) interest rates. C) government expenditure. D) tax rates.