What is the opportunity cost of allocating more and more resources to the production of capital goods?
A. a decrease in real income
B. the amount of consumption goods that could have been produced
C. the increase in pollution
D. the environmental goods foregone
Answer: B. the amount of consumption goods that could have been produced
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If benefit functions for a public good could be identified accurately, incremental benefits would be measured as
a. the area under the MSB function between the pre- and post-policy abatement levels. b. the area under the TSB function between the pre- and post-policy abatement levels. c. a horizontal distance on the MSB model corresponding to the pre- and post-policy abatement levels d. none of the above
If you deposit $10,000 in a savings account at an annual interest rate of 6%, how much will you have in the account at the end of three years?
A) $8,396 B) $11,800 C) $11,910 D) $10,600
A sales tax is an example of:
A. a specific tax. B. an ad valorem tax. C. a lump sum tax. D. an income tax.
It is ______ that a tariff, unlike a quota, provides revenues to the government; it is ________ that a quota directly limits the quantity of a nation's imports from a specific country.
A. true; true B. false; false C. false; true D. true; false