A tax that fell very heavily on the rich and the upper middle class might shift the Lorenz curve from
A. J to K.
B. K to L.
C. L to K.
D. I to J.
C. L to K.
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Positive externalities are created by people when they
A) add to the net real income of society. B) are altruistic or concerned for the welfare of others. C) benefit others without intending to do so. D) increase the general welfare. E) promote the happiness of others.
Which of the following are ways to sell a customer additional units without dropping the price on previous purchases
a. Offer quantity discounts b. Offer two-part pricing ex: membership fees c. Bundle the goods together d. All of the above
Governments can deal with externalities through the use of
a. subsidies. b. taxes. c. price controls. d. All of the above are correct.
When the IMF provides loans to developing countries, it often requires these countries to adopt:
A. a contractionary fiscal policy and an expansionary monetary policy. B. contractionary monetary and fiscal policies. C. expansionary monetary and fiscal policies. D. a contractionary monetary policy and an expansionary fiscal policy.