Gary has to decide between attending a two-day art workshop and a four-day art workshop. If he evaluates only the change in net benefit when he switches between the two options, he is using the technique of:
A) ordinal analysis.
B) comparative statics.
C) optimization in levels.
D) optimization in differences.
D
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In 2009, Congress passed tax laws to reduce income tax rates for some taxpayers. This action is called
A) a discretionary fiscal policy. B) a discretionary revenue policy. C) an automatic fiscal policy. D) an annual tax policy. E) induced tax policy.
If the price of gasoline fell from $2.95 to $2.85 per gallon, your expenditure on gasoline would increase if your price elasticity of demand for gasoline equals
A) 1.1. B) 1.0. C) 0.9. D) Total revenue would increase at all of the above elasticities.
Capital and labor only very recently have been free to move across international borders
Indicate whether the statement is true or false
The existence of positive externalities in the consumption of a good implies that: a. the social supply curve of the good lies to the right of the private supply curve
b. the government will need to provide subsidies to ensure a socially efficient level of consumption. c. the socially efficient quantity of the good will be less than the market equilibrium quantity. d. the good generates an external cost. e. the market equilibrium price of the good will be greater than the social equilibrium price.