The crowding-out effect refers to
A. an increase in the consumption of imported goods at the expense of domestic goods.
B. a decrease in consumer spending caused by a decrease in consumer confidence.
C. an increase in the consumption of domestic goods at the expense of imported goods.
D. a decrease in consumption and investment caused by an increase in government borrowing.
Answer: D
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Debit cards are safer than credit cards because debit cards generally require a PIN number
a. True b. False Indicate whether the statement is true or false
The Laffer curve indicates that
a. when tax rates are low, a decrease in tax rates is likely to increase tax revenues. b. when tax rates are high, an increase in tax rates is likely to a decrease in tax revenues. c. tax revenue will always increase when tax rates are increased. d. tax revenue will always decrease when tax rates are lowered.
The external costs of alcohol consumption are related to, among other things, death and injury related to auto accidents caused by drunk drivers. These costs have been estimated to be about 47 cents per ounce of alcohol consumed. Taxes on alcohol amount to 23 cents per ounce. This suggests that alcohol consumption is (i) greater than the efficient or optimal amount; (ii) should be reduced to zero to eliminate the externality.
A. i and ii B. i not ii C. ii not i D. neither i nor ii
The concentration ratio for an oligopoly is considered
A. Under 40 percent. B. Over 60 percent. C. 100 percent. D. 90 percent.