If the government could raise taxes on one good, which product should the government increase tax rates in order to raise tax revenue?
a. Cigarettes
b. Alcohol
c. Sodas
d. None of the above
a
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Answer the following statement(s) true (T) or false (F)
1. In the absence of transactions costs, changes in property rights have no effect on economic efficiency. 2. In the absence of transactions costs, changes in property rights have no effect on the distribution of income. 3. Changes in property rights will not affect the allocation of resources as long as transactions costs are zero and the subsequent effects on market demand are negligible. 4. The weak Coase theorem is true when reallocation of property rights have negligible income effects . 5. According to the Coase Theorem, in the absence of transactions costs, recipients of an external benefit can be expected to offer a bribe in exchange for greater production.
If the bidders at an oral auction have true values of $78, $72, $66, and $65, the item will sell for
a. $78 b. just under $78 c. $72 d. just over $72
One way fiscal policy affects aggregate demand is:
A. directly through government spending. B. directly through tariffs. C. directly through taxation. D. All of these are true.
Answer the following questions true (T) or false (F)
1. A complete circular flow of the economy includes both the government sector and the financial markets. 2. Net exports of goods and services is equal to imports minus exports. 3. If personal income is equal to $3,000 and consumers spend $3,600, the level of savings in the economy would $600.