When deciding to implement a congestion tax, economists and the government would use the elements of the economic way of thinking to primarily determine:
A. if the tax would be allocated equitably.
B. what congestion tax amount should be charged.
C. who should be exempt from the tax.
D. where to spend the revenue generated.
Answer: B
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Suppose Political Party A proposes a tax cut on business income to stimulate the economy. Political Party B opposes the tax cut on business income asserting that it would only help businesses, not the average working man and woman
If you were hired as an economist for Political Party A, explain how the tax cut on business income would help the average working man and woman.
If a natural monopolist is unregulated, then
A) the monopoly will produce efficiently from society's point of view. B) the monopoly will produce inefficiently from society's point of view. C) the monopolist will be earning just a normal rate of return on investment. D) the monopolist will determine the profit maximizing quantity by equating marginal cost to the demand curve.
The demand curve for a monopolistic competitor is likely to be flatter than that of a monopolist
a. True b. False Indicate whether the statement is true or false
Refer to the information. With the $40 billion deposit, the banking system will be able to expand the money supply through loans by:
Answer the question on the basis of the following information about a banking system: new currency deposited in the system = $40 billion; legal reserve ratio = 0.20; excess reserves prior to the currency deposit = $0. A. $160 billion. B. $200 billion. C. $40 billion. D. $128 billion.