After a tax is placed on a good or service, which of the following does NOT occur?
A. The total volume of sales of the good or service increases.
B. Buyers pay more for the good or service.
C. Sellers receive less when they produce and sell the good or service.
D. Government revenues decrease.
Answer: A
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Which of the following is consistent with the circular flow of income?
I. Goods and services flow in one direction. II. Payments and incomes flow in one direction. III. Sellers receive less than what buyers spend. A) I only B) II only C) III only D) Both I and II
According to Coase,
a. government regulation will almost always be necessary to eliminate negative externalities b. externality problems can be solved efficiently by the assignment of property rights if transaction costs are low c. when bargaining costs are high, it is necessary to assign property rights d. assignment of property rights will lead to equitable but inefficient solutions to externality problems e. there really is no externality problem with renewable resources
An individual who voluntarily leaves one job and spends a period of time seeking another is considered: a. frictionally unemployed. b. cyclically unemployed
c. structurally unemployed. d. seasonally unemployed.
By 2007 the deficit
a. was out of control and increased substantially soon thereafter. b. seemed under control but increased substantially soon thereafter. c. was out of control but decreased substantially soon thereafter. d. seemed under control and decreased substantially soon thereafter.