By allowing an income-tax deduction for charitable contributions, the government
a. encourages a private solution to a particular positive-externality problem.
b. discourages a private solution to a particular positive-externality problem.
c. encourages a private solution to a particular negative-externality problem.
d. discourages a private solution to a particular negative-externality problem.
a
You might also like to view...
Refer to Goods X and Y. If the indifference curves are downward sloping straight lines (rather than convex curves), then we can conclude that
Assume that good X is on the horizontal axis and good Y is on the vertical axis in the consumer-choice diagram. PX denotes the price of good X, PY is the price of good Y, and I is the consumer's income. Unless otherwise stated, the consumer's preferences are assumed to satisfy the standard assumptions. a. X does not affect the individual’s utility. b. Y does not affect the individual’s utility. c. both X and Y affect the individual’s utility. d. neither good affects the individual’s utility.
A decline in money supply will lead to a(n) ________ if nominal wages are rigid
A) increase in labor demand B) fall in real wages C) fall in labor demand D) increase in real output
If the Surgeon General announces that colas cause cancer then we would expect
A. the demand for cola will stay the same. B. the demand for cola will shift right. C. the demand for cola will shift left. D. one cannot tell.
A public utility, such as a water company, is an example of a
a. technological monopoly b. geographic monopoly c. natural monopoly d. government monopoly