Which of the following is true for a "closed economy"?
A) government spending equals taxes
B) there are no imports or exports
C) exports equal imports
D) there is no saving
E) there is no government spending or taxes
B
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What will be the effect of a tax cut on consumption if consumption offers diminishing returns?
What will be an ideal response?
The table above shows the marginal costs and marginal benefits of college education. The marginal private benefit of college education at the efficient amount of enrollment is
A) $20,000 per year. B) $16,000 per year. C) $12,000 per year. D) $14,000 per year.
In 2005, the median income of renters was $26,317 and the median income of homeowners was $50,505. If imputed rent were added to household income or rent became deductible, the personal income tax would become
A. more progressive. B. more regressive. C. about proportional. D. less progressive.
Suppose that on average there are three more car accidents for every extra inch of snowfall in a certain region. If snowfall is graphed on the y axis and car accidents on the x axis, then if we graph this relationship, the slope of the line will be
A) 9. B) 3. C) 1/3. D) 1.