Answer the following statement(s) true (T) or false (F)
1. When a Clarke tax is used, the revenue collected may or may not cover the cost of providing the public good.
2. One problem with a Clarke tax is that although it may not cover the complete cost of a public good, it will never generate more than the cost of the good.
3. Social costs are equal to the costs imposed on others.
4. Social costs are felt by consumers but not by manufacturers.
5. All cars contribute positively to social gains.
1. True
2. False
3. False
4. False
5. False
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Human capital refers to the accumulated skills and training that workers possess
Indicate whether the statement is true or false
Total profit is equal to
a. total revenue minus total cost. b. total revenue minus explicit cost. c. total revenue minus variable cost. d. total revenue minus marginal cost.
The Keynesian model of macro equilibrium provided an explanation for the:
a. high rates of both unemployment and inflation experienced during the 2110s. b. prolonged high rates of unemployment experienced during the 1930s. c. low interest rates of the 1950s and 1960s. d. budget surpluses and rapid growth of the U.S. economy during the 1990s.
An increase in deficit spending tends to raise interest rates, thereby resulting in a multiplier effect that is higher than what would be associated with an equivalent increase in consumption spending
a. True b. False Indicate whether the statement is true or false