Which of the following is a merit good in the United States?
a. defense
b. public libraries
c. churches and synagogues
d. interstate highways
e. personal contributions to a cancer fund
B
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Assume that the economy is in a recession and consumers are expecting a fall in their income levels. This will cause a(n):
A) left shift in the market demand for all goods. B) right shift in the market demand for all goods. C) increase in the total quantity demanded of all goods. D) decrease in the total quantity demanded of all goods.
What is meant by tax incidence? Is the entire burden of the tax always borne by those on whom it is imposed?
What will be an ideal response?
If the consumption of good generates an external benefit, then the market equilibrium quantity will be:
A. socially optimal. B. less than the socially optimal quantity. C. equal to zero. D. greater than the socially optimal quantity.
Arbitrage is the act of buying at one place and selling at another place in order to profit from the price differences that exist between the two places.
Answer the following statement true (T) or false (F)