Suppose that the Anytown city government asks private citizens to donate money to support the town's annual holiday lighting display. Assuming that the citizens of Anytown enjoy the lighting display, the request for donations suggests that:
A. the display creates negative externalities.
B. government should tax the producers of holiday lighting.
C. resources are currently overallocated to the provision of holiday lighting in Anytown.
D. resources are currently underallocated to the provision of holiday lighting in Anytown.
Answer: D
You might also like to view...
In 2017, per capita real GDP was roughly half its value in 1960.
Answer the following statement true (T) or false (F)
As the economy enters a strong expansion in which real GDP increases, which of the following occurs?
A) The demand for money decreases and there is a movement upward along the demand for money curve. B) The demand for money increases and there is a movement downward along the demand for money curve. C) The demand for money curve shifts rightward. D) The nominal interest rate falls as the demand for money curve shifts leftward. E) The demand for money curve shifts leftward.
When the U.S. government launched a massive rescue plan in response to the 2008-2009 financial crisis, the overall demand for loanable funds ________ because the ________
A) decreased; demand by households, businesses, and financial institutions changed by the same amount as the federal government demand B) did not change; demand by households, businesses, and financial institutions changed by the same amount as the federal government demand C) increased; demand by households, businesses, and financial institutions increased as did the federal government demand D) decreased; demand by households, businesses, and financial institutions decreased by more than the federal government demand increased E) increased; demand by households, businesses, and financial institutions increased by more than the federal government demand increased
In the economic sense, almost everything is scarce. ________ of a good or service occurs when the quantity demanded is greater than the quantity supplied at the current market price
A) Scarcity B) A surplus C) An overstock D) A shortage