If education produces positive externalities and the government does not intervene in the market, we would expect
a. the equilibrium price to be higher than the optimal price.
b. the equilibrium quantity to be lower than the optimal level.
c. the equilibrium quantity to be higher than the optimal level.
d. both a and b are correct
b
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Why will there be less crowding out of private spending by government spending the less sensitive consumption, investment, and net exports are to changes in interest rates?
What will be an ideal response?
Because cooperation dominates noncooperation as a strategy for maximizing profits, cheating is rarely if ever an issue that cartels have to contend with
Indicate whether the statement is true or false
Aggregate output is ________ related to autonomous consumer expenditure, and is ________ related to the level of taxes
A) negatively; negatively B) negatively; positively C) positively; negatively D) positively; positively
The administrative burden of taxes is:
A. smallest with a lump-sum tax. B. the same if the revenue generated is the same for any kind of tax. C. smaller the larger the amount of the tax. D. the same across all types of taxes.