Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels?
a. higher tax rates
b. a higher rate of investment
c. a smaller trade sector
d. greater use of taxation to transfer income from the rich to the poor
b. a higher rate of investment
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Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfares are $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfares are $450. If the Chicago-Atlanta round-trip air fare were $350, should you use the coupon to go to Miami?
A. Yes, your economic surplus would be $400. B. Yes, your economic surplus would be $50. C. No, your economic surplus would be ?$100. D. No, your economic surplus would be ?$50.
Demand-pull inflation happens during periods of full employment in the business cycle when demand for goods and services is growing faster than supply
a. True b. False Indicate whether the statement is true or false
In the 1990s, the Monks of St. Benedict's the Monks determined that their ________ were ________ in the egg and cookie business, so they ________ .
A) opportunity costs; too low; switched to providing private retreats B) opportunity costs; too high; switched to providing private retreats C) profits; too high; went out of business D) operating costs; too low; opened a new business
Goods whose benefits to society are not diminished as more people consume them and whose benefits cannot be withheld from anyone are:
A. impossible since resources are limited. B. examples of negative externalities. C. public goods. D. food and other necessities.