Public schools, parks, libraries, and roads are paid for largely through tax revenue because
a. society finds them so valuable that citizens are happy to pay for their full cost.
b. these goods create a free-rider problem.
c. if they were funded privately, too many of these goods would be produced.
d. All of the above are correct.
b
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When an economy is above full employment and the government has a budget deficit, that deficit
A) is less than the structural deficit. B) exceeds the structural deficit. C) is equal to the cyclical deficit minus the structural deficit. D) is equal to the cyclical deficit. E) is equal to the structural deficit minus the cyclical deficit.
"If the price of a ticket to Sea World exceeds the marginal cost of the ticket by $13, a producer surplus exists for Sea World." Is this statement true or false?
What will be an ideal response?
Total welfare gains from trade to the economy can be measured: a. as the sum of consumer and producer surpluses
b. as the difference between producer surplus and consumer surplus. c. as the sum of consumer and producer surpluses minus taxes d. as the net gain in consumer surplus that results from an action that alters a market equilibrium.
If product prices were stated in terms of gallons of milk, then milk would be functioning primarily as:
A. legal tender. B. a unit of account. C. fiat money. D. a store of value.