A government action that can help correct positive externalities is
A) a tax on producers of the good that provides external benefits.
B) a subsidy to consumers of the good that provides external benefits.
C) an effluent fee charged to producers of the good that provides external benefits.
D) regulations aimed at reduced production by sellers of the good that provides external benefits.
B
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When the price of hot dogs is $1.50 each, 500 hot dogs are sold every day. After the price falls to $1.35 each, 510 hot dogs are sold every day. At the original price, what is the price elasticity of demand for hot dogs?
A. 0.2 B. 66.67 C. 2 D. 5
Free markets further all of society's goals
a. True b. False Indicate whether the statement is true or false
The political incentive structure tends to
a. encourage a balanced budget regardless of economic conditions. b. discourage budget deficits during recessions. c. encourage budget surpluses during both recessions and expansions. d. encourage budget deficits during both recessions and expansions.
A current value for the CPI of 125 means that the
A. consumer must now pay $1.25 to purchase goods that cost $1.00, on the average, in the base year. B. average price level currently is 125 times higher than the average price level during the base year. C. purchasing power of a given money income is 25 percent larger during the base year than when the index was formulated. D. purchasing power of money has increased 125 percent over time.