How does Professor Tabarrok describe a situation in which someone receives a gift that they don't value?
A. The incentive problem
B. Negative trade
C. The knowledge problem
D. Negative charity
Answer: B. Negative trade
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The change in the money supply in an economy is measured as:
a. the difference between the government deficit and government borrowing. b. the sum of a change in high-powered money and the change in tax revenues. c. the difference between government borrowing and government spending. d. the ratio of the change in excess reserves to the deposit expansion multiplier. e. the change in the government budget deficit.
Which of the following serves to protect a monopoly structure?
a. appearance of close substitute goods b. creation of technologies that serve to break down barriers to entry c. continuing exclusive access to resources required to produce the good d. easier access to resources required to produce the good e. diseconomies of scale
For a monopolist, at the profit-maximizing level of output:
A. marginal revenue is greater than average revenue. B. price is greater than marginal revenue. C. price is equal to marginal revenue. D. average revenue is greater than price.
Refer to the Laffer Curve above. A cut in the tax rate from T5 to T4 would:
A. Decrease tax revenues and support the views of supply-side economists
B. Increase tax revenues and support the views of supply-side economists
C. Increase tax revenues and support the views of mainstream economists
D. Decrease tax revenues and support the views of mainstream economists