Taxes can be justified if the government uses the revenue to (i) provide public goods such as national defense. (ii) clean up negative externalities such as water pollution. (iii) regulate a common resource such as fish in a public lake. (iv) provide goods with positive externalities such as medical research
a. (ii) only
b. (ii) and (iii) only
c. (i), (ii), and (iii) only
d. (i), (ii), (iii), and (iv)
d
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Over the range of output, a firm’s marginal revenue initially increases and then decreases.
Answer the following statement true (T) or false (F)
The short-run equilibrium output of a competitive firm is found by equating marginal cost with price
a. True b. False Indicate whether the statement is true or false
Which of the following is a major reason for offshoring?
a. Global deregulation. b. Increased global demand for services. c. The gradual diminishing of global technological advances. d. All of the above are major reasons for offshoring.
In the U.S. economy, rents are the smallest source of household income.
Answer the following statement true (T) or false (F)