When the government both provides a service and covers its costs through taxation,
a. the government has a strong incentive to supply consumers with desired goods at a low cost.
b. consumers are in a weak position to either discipline the suppliers or alter the quantity or quality of the service provided.
c. the invisible hand will direct decision makers toward the most efficient level of output.
d. Consumers have strong incentive to be cost conscious.
B
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In 1979, the price of gasoline was $1.389 per gallon and the CPI was 72.6. In 2003, the price of gasoline was $1.589 per gallon and the CPI was 182.9. Find the real price of gasoline in 1979 and 2003 in terms of base period dollars
What will be an ideal response?
Private income and wealth completely determine how many goods and services one consumes
Indicate whether the statement is true or false
Which of the following reflects an investment in human capital?
a. a new labor-saving technology b. a new heath clinic c. a new factory employing more workers d. an increase in consumption per capita e. an increase in fringe benefits, such as paid vacations and overtime pay e. wealthy landowning class and a poor working class
Briefly explain at least three reasons why private negotiations cannot eliminate inefficiencies related to pollution control.
What will be an ideal response?