Concern is expressed on the part of the current administration about what should be the optimal tax rate for those households who make more than $250,000 per year. This issue corresponds to what branch of economics?
What will be an ideal response?
Normative economics
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A teacher tells her students that she will give them a riddle that each student has to solve separately and then announce his or her answer in the class. Those who get the correct answer will get a gift
Kate, a student in the class, decides to give the answer that most students give, although the answer she gets from solving the riddle is quite different. This is an example of ________. A) adverse selection B) moral hazard C) a pecuniary externality D) an information cascade
The price of a computer is $1,000 and the price of a car is $12,000. What is the relative price of a car? What is the relative price of a computer?
What will be an ideal response?
A cost or benefit of a good imposed on people other than the consumers or producer of a good is called a(n):
A. public good. B. merit good. C. private good. D. externality.
A. increase the interest-rate cost of funds used to finance R&D expenditures. B. decrease the interest-rate cost of funds used to finance R&D expenditures. C. decrease the expected rate of return on R&D expenditures. D. increase the expected rate
of return on R&D expenditures. A. increase the interest-rate cost of funds used to finance R&D expenditures. B. decrease the interest-rate cost of funds used to finance R&D expenditures. C. decrease the expected rate of return on R&D expenditures. D. increase the expected rate of return on R&D expenditures.