Some colleges charge all students the same fee for a weekly dining services meal plan. Suppose that students differ by how much food they consume each week. For example, members of the women's swimming team consume, on average, twice as much food as the average female college student, and the average male college student consumes 20 percent more food than the average female college student. The
dining services fee is most like a(n)
a. excise tax that conforms to the benefits principle.
b. excise tax that violates the benefits principle.
c. lump-sum tax that conforms to the benefits principle.
d. lump-sum tax that violates the benefits principle.
d
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If a country has a large deficit in its current account
A) it has a large surplus in its financial account. B) it exports more than it imports. C) it is a net creditor to the rest of the world. D) None of the above are necessarily true.
The circular flow diagram divides the economy into:
a. Winners and losers. b. Real sector and nominal sector. c. Domestic sector and foreign sector. d. Agricultural sector and non-agricultural sector. e. Producer sector and consumer sector.
The Fed
A) always engages in countercyclical policy. B) always intends to engage in procyclical policy. C) can engage in procyclical policy if it mistimes its policy response. D) never intends to engage in countercyclical policy.
Refer to the diagram. Economists would argue that health care should be provided to patients in:
A. some amount less than Q 1 .
B. amount Q 1 .
C. some amount between Q 1 and Q 2 .
D. amount Q 2 .