If government decides to produce a collective consumption good, taxes have to be levied to finance the production. In evaluating government provision then, the benefits of public production have to be _____
a. high
b. weighed against the excess burden of taxation
c. positive
d. weighted against the tax incidence on poor families
b
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Which of the following is likely to be observed among unemployed individuals if the government offers generous unemployment benefits?
A) Higher motivation to look for a job B) Increased acceptance of low-paying jobs C) Lower current consumption D) Reduced motivation to look for a job
The cross-price elasticity between good X and good Y is positive. Other things being equal, if the price of X rises:
A. quantity of Y demanded decreases. B. quantity of Y demanded increases. C. a consumer spends more on good Y than on good X. D. a consumer spends more on good X than on good Y.
India lags China in the development of a large manufacturing sector
Indicate whether the statement is true or false
What effect does the entry of new firms in a monopolistically competitive market have on the economic profits of existing firms in the market? How might existing firms attempt to counteract this effect?
What will be an ideal response?