If the government began providing free textbooks to college students who would otherwise have bought their books from the private sector, the government's action would result in
A) a Ricardian dilemma.
B) a direct expenditure offset.
C) an increase in real Gross Domestic Product (GDP).
D) a reduction of the government deficit.
B
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Suppose a perfectly competitive firm and a monopolist are both charging $5 for their respective products. From this, one can infer that:
A. the competitive firm is charging too much, and the monopolist is charging too little. B. the marginal benefit from selling an additional unit of output is $5 for the competitive firm and less than $5 for the monopolist. C. the marginal benefit from selling an additional unit of output is $5 for both firms. D. the marginal benefit from selling an additional unit of output is less than $5 for both firms.
Which of the following would indicate that an income tax is progressive?
a. high-income people pay $3,000 . low-income people pay $1,000 b. low-income people pay $3,000 . high-income people pay $1,000 c. high-income and low-income people all pay $1000 each d. high-income people pay 20 percent of their income in taxes; low-income people pay 10 percent e. both high-income and low-income people pay 10 percent of their income in taxes
Suppose you buy a new Tesla Model S. The battery that comes with the car is a(n)
A. intermediate good. B. financial good. C. final good. D. transfer good.
Which would most likely cause a rightward shift in the demand curve for the New York Times newspaper?
a. An increase in the price of the New York Daily News b. A decrease in the size of the population in the New York area c. A decrease in the costs of printing d. An improvement in cable television in the New York area