Public choice theory indicates that representative government yields outcomes more consistent with economic efficiency when a close relationship exists between the benefits received and the costs borne by each voter. Which of the following methods of financing a government program will most likely result in a close relationship between voter benefits and costs?

a. progressive income tax
b. retail sales tax
c. property tax
d. user charges


D

Economics

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The existence of a natural monopoly stems from the size of the firm relative to the total market demand for the product of that firm

a. True b. False Indicate whether the statement is true or false

Economics

If the United States exports 6 million bushels of corn to Japan and thereby earns income with which it imports 3 million digital video recorders from Japan, the United States' terms of trade with Japan for corn and digital video recorders is 2:1.

a. true b. false

Economics

If the government increases the income tax rate:

A. total income increases. B. disposable income remains unaffected. C. disposable income increases. D. disposable income decreases.

Economics

The United States placed a limit on the amount of cars that can be imported into the United States. This is an example of

A. a tariff. B. dumping. C. an export subsidy. D. a quota.

Economics