In economics, interest refers to all of the following EXCEPT
A) the payment for current rather than future command over resources.
B) the cost of obtaining credit.
C) the return paid to owners of financial institutions.
D) the return paid to the owners of capital.
Answer: C
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What are the two largest sources of tax revenues for the U.S. federal government?
What will be an ideal response?
Which of the following purported externalities in fact does not distort the allocation of resources? I. An individual's unwillingness to cut his or her own lawn in an otherwise immaculately kept neighborhood. II. Smoke produced by a new firm in an area which raises the costs of other firms. III. A new firm's bidding up skilled wages in an area, thereby raising costs of other firms. IV. An
individual's unwillingness to obtain job training, thereby lowering the total GNP. Possible choices: a. I, III, and IV. b. III and IV. c. III only. d. IV only.
Taxing people according to their marginal valuations of a public good may be efficient, but it may not be fair if the ability to pay differs
a. True b. False
If the demand for tennis shoes decreases and a firm's supply curve is upward sloping, then:
A. producer surplus decreases. B. producer surplus does not change. C. producer surplus increases. D. producer surplus may either increase or decrease.