The economic problem is essentially one of deciding how to make the best use of
A. limited resources to satisfy limited wants.
B. unlimited resources to satisfy limited wants.
C. limited resources to satisfy unlimited wants.
D. unlimited resources to satisfy unlimited wants.
C. limited resources to satisfy unlimited wants.
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An example of tax smoothing is provided by evidence of
A) temporary changes in defense expenditures by the government. B) reductions in tax rates prior to presidential elections. C) Keynesian tax cuts designed to help the economy recover from a recession. D) reliance on debt financing rather than taxation during World War II.
The reason that differences in economic growth rates are important in the long run is that
A) growth compounds over time. B) population naturally shrinks in most countries. C) real GDP usually drops when adjusted for inflation. D) nominal GDP typically increases faster than real GDP.
Software programs have been introduced that allow you to use your personal computer like a telephone to talk to others who own the same software. One such program costs $50 to buy and allows you to make unlimited calls for free. The economics of
substitutions and complements are present in this scenario. a . Explain in economic terms the effect of these products on the market for long distance telephone service. b. Explain in economic terms the effect of these products on the market for personal computers.
Refer to the information provided in Figure 16.2 below to answer the question(s) that follow.
Figure 16.2Refer to Figure 16.2. To force this firm to produce the efficient level of output, the government should impose a tax of
A. $5.00 per car. B. $10.00 per car. C. $15.00 per car. D. an amount that is indeterminate from this information.