How many cars will this country import in an open economy situation?
A. 40,000
B. 60,000
C. 80,000
D. 20,000
Answer: A
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The government should provide one more unit of a public good if ________
A) the marginal benefits equal the marginal costs of providing the additional unit B) the marginal cost of providing the next unit exceeds the marginal benefits C) the marginal benefits exceed the marginal costs of providing the next unit D) the marginal costs of providing the next unit equal the average cost of providing the next unit
Knowledge capital is ________ in production and ________. As a result, firms ________ free ride
A) nonrival; nonexcludable; cannot B) nonrival; excludable; can C) nonrival; nonexcludable; can D) rival; nonexcludable; cannot
What are the main arguments for and against Fed independence?
What will be an ideal response?
A year ago a country reduced the tax rate on all interest income from 40% to 10%. During the year private saving was $600 billion as compared to $500 billion the year before the tax reform. Taxes collected on interest income fell by $150 billion. Assuming no other changes in government revenues or spending which of the following is correct?
a. the substitution effect was larger than the income effect; national saving rose b. the substitution effect was larger than the income effect; national saving fell c. the income effect was larger than the substitution effect; national saving rose d. the income effect was larger than the substitution effect; national saving fell