National defense is a classic example of a public good because
a. there is no market for private security services.
b. it is difficult to exclude people from receiving the benefits from national defense once it is provided.
c. everyone agrees that some level of national defense is important, but only the government knows the optimal amount.
d. there are no private firms willing to supply defense goods such as tanks and weapons.
b
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A recession can best be defined as a period of time in which
A. total output of the economy falls. B. total output of the economy rises very slowly. C. total unemployment falls. D. total international trade fails to rise. E. the rate of inflation falls below zero.
Explain why average total costs initially decrease and then increase as output increases
What will be an ideal response?
Why might improvements in children's public health care services lower fertility?
What will be an ideal response?
In practice, turning horizontal and vertical equity into tax law
a. hasn't been tried. b. has been fairly easy. c. is resisted by nearly all taxpayers. d. has been extremely difficult.