"Positive externalities" create a case for financing education to some extent from tax revenues insofar as
What will be an ideal response?
people tend to ignore the benefits their education confers on others in deciding how much education to obtain.
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When perfectly competitive firms are earning zero accounting profits, a. we would expect entry into the industry
b. we would expect stability in the industry, since it is in long run equilibrium. c. we would expect exit from the industry. d. we would expect none of the above.
Tax revenues can rise as a result of a decrease in income tax rates, as long as the tax base increases sufficiently
Indicate whether the statement is true or false
According to crude versions of the quantity theory of money
A. the money supply determines the real interest rate in equilibrium. B. the general price level is determined strictly by the real costs of production. C. the general price level is exactly proportional to the money supply in equilibrium. D. increases in the money supply will increase output and employment in the long run.
The demand for food (a broad group) is more:
A. sensitive to price changes than the demand for beef. B. elastic than the demand for beef (specific commodity). C. inelastic than the demand for beef (specific commodity). D. responsive to price changes than the demand for beef.