The concept of "random walk" applies most closely to predictions of
a. consumer demand for a product after a price increase.
b. the effects of a tax on the supply of oil.
c. the effects of transfer payments on labor supply.
d. the price of a particular stock one year from now.
d
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A congestion toll imposed on a highway driver to force the driver to take into account the increase in travel time she imposes on all other drivers is an example of internalizing the externality
a. True b. False Indicate whether the statement is true or false
A government policy that allows retirement savings to accumulate tax-free is an example of a policy to promote economic growth by:
A. increasing physical capital. B. increasing human capital. C. increasing the availability of natural resources. D. improving technology.
What price should a firm charge for a package of five ties given a marginal cost of $5 and an inverse demand function P = 10 ? Q by the representative consumer?
A. $50 B. $12.50 C. $37.50 D. $25
What reasons can you suggest for arguing that the federal government, unlike individuals, need never run a surplus budget?