From an efficiency standpoint, one must compare the excess burdens of tax and debt finance.
A. True
B. False
C. Uncertain
A. True
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Joe pays $8,000.00 in tuition. The 8,000 dollar tuition Joe pays is an example of what economists call
A) a relative price. B) a money price. C) an indexed price. D) an opportunity price.
The minimum level of net investment necessary to maintain the stock of capital depends on
A) the rate of interest and the size of the capital stock. B) the rate of depreciation and the size of the capital stock. C) the corporate profits tax and the interest rate. D) business confidence and the corporate profits tax.
A gas station opened up on the highway in a patch where there are no gas stations close by. It is more likely to be able to set higher prices because
a. the demand for its product is more inelastic due to an unavailability of substitutes b. the demand for its product is more elastic due to an unavailability of substitutes c. the demand for its product is more inelastic due to an availability of substitutes d. the demand for its product is more elastic due to an availability of substitutes
A reduction in net exports shifts the aggregate
a. demand curve inward. b. demand curve outward. c. supply curve outward. d. supply curve inward.