Payroll taxes are used to collect revenue for the Social Security program
a. True
b. False
Indicate whether the statement is true or false
True
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Monopolistic competition differs from oligopoly in that in monopolistic competition firms act independently while in oligopoly firms act interdependently
Indicate whether the statement is true or false
Which of the following best illustrates the problem of moral hazard?
A) a professional baseball team that consistently drafts poor players B) an individual that is hiding a pre-existing condition from a health insurance provider C) an increase in the level of one's income will lead to a decrease in demand for inferior goods D) an economic agent that engages in risky behavior once a loan contract is signed
Suppose that smoking creates a negative externality. If the government imposes a per-cigarette tax equal to the per-cigarette externality, then
a. the after-tax equilibrium quantity of cigarettes smoked will be less than the socially optimal quantity of cigarettes smoked. b. the after-tax equilibrium quantity of cigarettes smoked will be greater than the socially optimal quantity of cigarettes smoked. c. the after-tax equilibrium quantity of cigarettes smoked will equal the socially optimal quantity of cigarettes smoked. d. There is not enough information to answer the question.
_________ is the means by which commerce can occur.
a. Finance b. Revenue c. Money d. A financial market e. A business contract