The uncertainty that results from inflation causes changes in
A. Saving and investment behavior, but not consumption.
B. Consumption, but not saving and investment behavior.
C. Consumption, saving, and investment behavior.
D. Income, but not consumption.
Answer: C
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Which of the following must a firm be able to do to successfully price discriminate?
i. divide buyers into different groups according to their willingness to pay ii. prevent resale of the good or service iii. identify into which group (high willingness to pay or low willingness to pay) a buyer falls A) ii only B) i and ii C) i and iii D) iii only E) i, ii, and iii
The administrative burden of taxation relates to the a. the disincentive for individuals and businesses to work generate income
b. individuals' cost of preparing tax returns and the government's cost of enforcing tax laws. c. the opportunity cost of social programs. d. the net interest that must be paid on the national debt.
According to the Economic Freedom of the World measure, between 2000 and 2010 the economic freedom of the United States
a. declined and its rank fell from third to tenth during this period. b. increased, and the U.S. became the freest economy in the world during this decade. c. was largely unchanged and the U.S. remained the third freest economy in the world, behind only Hong Kong and Singapore. d. decreased, but the U.S. was still the freest economy in the world in 2010.
In what way do common resources give rise to negative externalities?