Two cities face identical prices for their housing. City A decided to be a pollution free city "Clean town" and all the factories would locate in city B "Smogville", we expect the prices of housing in city B "Smogville" to
a. increase
b. decrease
c. stay the same
d. none of the above
b
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________ are the largest components of state and local government revenue
A) Individual income taxes and corporate income taxes B) Transfers from federal government and sales taxes C) Individual income taxes and sales taxes D) Transfers from federal government and corporate income taxes E) Corporate income taxes and lottery income
Refer to Figure 35.6: If S1 represents the U.S. domestic supply of a good, what does S2 most likely represent?
A. Production possibilities under conditions of free trade. B. U.S. supply under tariff-restricted trade. C. The result of a foreign country dumping this good on the U.S. market. D. U.S. supply under quota-restricted trade.
Which of the following will make the real-world money multiplier smaller than the theoretical formula?
A. Banks actually hold fewer reserves than technically required by the Fed. B. Banks actually make loans for more money than they have in excess reserves. C. Banks may keep some excess reserves rather than loan it all out. D. Consumers spend more than they have using credit cards.
When a firm earns a normal rate of return, it
A. should shut down. B. breaks even. C. earns a profit. D. suffers a loss.