Taking some types of spending "off budget" means
A) eliminating that spending.
B) financing the spending by special one-time taxes.
C) borrowing to finance it instead of using tax revenue.
D) not counting that spending as part of the official budget.
D
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Answer the following statement(s) true (T) or false (F)
1. Nonexcludability refers to the possibility that the benefits of consumption can be shared. 2. The market demand for a public good such as environmental quality is found as the horizontal sum of all the individual demands for that good. 3. If the market for a public good is comprised of two consumers, 1 and 2, who have individual demands of p1 = 100 – 0.2QD and p2 = 250 – 0.5QD, then the market demand function would be P = 350 – 0.7QD. 4. If the third-party effects of a good generate benefits to a third party, it is a positive externality. 5. If MSC = 40.0 + 0.25Q, and MPC = 40.0 + 0.14Q, then production is associated with an externality specified as MEC = 40.0 + 0.36Q.
_____ _____ theory applies economic principles to public sector decision making
Fill in the blank(s) with the appropriate word(s).
During the course of a bad recession the Fed would probably be doing each of the following, except
A. selling securities on the open market. B. lowering interest rates. C. lowering reserve requirements. D. lowering the discount rate.
Refer to the graph shown. If this monopolist sets the price to maximize profit, it will charge:
A. $8 for its product. B. $16 for its product. C. $10 for its product. D. $12 for its product.