In an economy with no income taxes or imports, if the MPC is .75, the multiplier is
A) 0.50. B) 4.00. C) 0.33. D) 3.00. E) 0.25.
B
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Is there evidence that an increase in per capita income stimulates population growth?
What will be an ideal response?
An auto-insurance company introduces an anti-theft device that records how well the customer has secured his car. If the driver locks his car with the monitored lock every day, the rates go down. The company is trying to solve a __________problem
a. Adverse selection b. Moral hazard c. Forced bankruptcy d. None of the above
When the benefit-cost ratio of a project is greater than 1, the project should be considered.
A. True B. False C. Uncertain
By providing free garbage removal, a community
A. discourages activities that produce detrimental externalities. B. disincentivizes citizens from recycling. C. leads citizens to throw out less garbage than is socially optimal. D. raises the opportunity cost of recycling.