If there are human capital externalities, then
A) human capital should be taxed.
B) convergence in per capita incomes occurs.
C) differences in human capital across countries can persist.
D) pollution is a problem.
C
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A college student is thinking about running an ice-cream truck over the summer. Which of the following would likely be an ongoing expense of the business?
A. The cost of the truck B. The cost of the gasoline used C. The cost of ice cream scoopers D. None of these is an ongoing expense.
In the short run, a firm should shut down its operation if:
a. its losses are less than TFC at the MR = MC point. b. its losses equal TFC at the MR = MC point. c. its losses are greater than TFC at the MR = MC point. d. TR is less than TC. e. TR exceeds TVC.
The park in Hammerhead, Florida, built to honor the city's founding father, General Hammerhead, is starting to deteriorate. It would take about $5,000 to restore the General's statue, repair the benches, and repair the fountain, but the city budget is
tight. Also, the deterioration is not that noticeable. Mayor Grouper suggests delaying the repair until after the election, three years away. City Councilwoman Halibut notes that by then the park will be dilapidated, and repairs will cost $25,000 . From a public choice perspective, what is the likely outcome of this debate?
A cut in government spending, a decrease in income abroad, an increase in taxes, or an expectation that future consumer income will fall will all cause aggregate:
A. demand to shift rightward. B. demand to shift leftward. C. supply to shift rightward. D. supply to shift leftward.