A good that is both rival and exclusive is called
a. a private good
b. a public good
c. a quasi-private good
d. an external good
e. an open access good
A
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The income per capita of a country with a population of 50,000 is $4,500. Its gross domestic product is ________
A) $54,500 B) $900,000 C) $225,000,000 D) $120,000,000
The government prefers a market-based approach to reduce firms’ emissions of a toxic gas but wants to make certain that no more than 1,000 cubic yards of the gas are ever emitted in a single day. The most efficient policy under these circumstances is likely to be a system of
A. per-unit taxes on emissions of the gas. B. per-unit taxes on the goods produced by firms that emit the gas. C. subsidies to firms that agree not to emit the gas. D. sales of permits to emit specified quantities of the gas on specified days.
Exhibit 15-2 Aggregate demand and supply model
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Suppose the economy in Exhibit 15-2 is in equilibrium at point E1 and the marginal propensity to consume (MPC) is 0.75. Following Keynesian economics, the federal government can move the economy to full employment at point E2 by:
A. decreasing government tax revenue by approximately $33 billion. B. decreasing government tax revenue by $750 billion. C. increasing government tax revenue by $100 billion. D. increasing government tax revenue by approximately $33 billion.
The main advantage of a corporate form of organization is that
A. shareholders have unlimited liability. B. all corporate profits must be distributed as dividends. C. shareholders have limited liability. D. shareholders are not subject to double taxation.