Which of these is an example of an expansionary fiscal policy?
a. A decrease in fiscal expenditure on Social Security
b. An increase in the personal income tax rate
c. A decrease in fiscal expenditure on national defense
d. An increase in transfer payments
d
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Economists favor the use of peak-load pricing since it can
A. improve the equity of the distribution of income. B. enhance the efficiency in the use of scarce resources. C. improve the profit levels of corporations. D. result in lower levels of pollution.
Efficient production of a public good requires:
a. that individuals pay for such goods according to benefits received. b. that each individual's MRS be equal to the RPT of public goods for private goods. c. that the sum of individuals' MRSs be equal to the RPT of public goods for private goods. d. that governments produce at the low point of the average cost curve for the public good.
Income tax reports in QuickBooks include all of the following except:
a. Income Tax Preparation report b. Income Tax Detail report c. Income Tax Summary report d. Income Tax Mapping report
Why is simply asking people how much they value a highway not a reliable way of measuring the benefits and costs?
a) Those who stand to lose have an incentive to exaggerate their true costs. b) Those who stand to gain have an incentive to tell the truth. c) Answers to the survey questions will always be downwardly biased. d) Not everyone asked will be using the highway.