If K-12 education is determined to be an inframarginal positive externality, this means that K-12 education is being underproduced
a. True b. False
b
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When a currency is undervalued, international reserves ________ and the country has a balance-of-payments ________.
A. decrease; surplus B. increase; deficit C. decrease; deficit D. increase; surplus
Which of the following is a market-based solution to the problem of adverse selection?
A) Taxation B) Signaling C) Sniping D) Subsidization
When the tax to fund a government project is allocated among voters in proportion to the benefits they receive from the project,
a. productive (efficient) projects will tend to be opposed by a majority of voters. b. counterproductive (inefficient) projects will often be favored by a majority of voters. c. projects that are productive (efficient) will tend to be favored by an overwhelming majority of voters. d. democratic political decision making can be expected to work poorly.
Kroger's grocery chain wants to finance the purchase of a new warehouse. It decides to sell bonds
a. Kroger's plans to use equity financing and its action is part of the demand for loanable funds. b. Kroger's plans to use equity financing and its action is part of the supply of loanable funds. c. Kroger's plans to use debt financing and its action is part of the demand for loanable funds. d. Kroger's plans to use debt financing and its action is part of the supply of loanable funds.