A justification for general grants is _____
a. the equalization of revenues between government units with different income levels
b. higher level governments might have a greater ability to raise revenue
c. progressive taxation cannot be done on the local level
d. a and b
d
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Adverse selection and moral hazard are examples of:
A) transaction costs B) information cost C) symmetric information D) financial market efficiency
Opportunity costs are
A) objective because they can always be put in monetary terms. B) objective because specific things are given up when making a choice. C) subjective because each person decides the value of the foregone alternative. D) subjective because it is impossible to put a monetary value on foregone alternatives.
Experience ratings provide firms with an incentive to:
A. hire older workers. B. invest in health and safety programs. C. hire disabled workers. D. None of these
Use the above figure. When the budget line rotates from "b" to "c"
A. the price of product K increases and the quantity demanded of product K decreases. B. the price of product J increases and the quantity demanded of product J decreases. C. the price of product K decreases and the quantity demanded of product K increases. D. the price of product J decreases and the quantity demanded of product J increases.