Paddy and Mick live in a small town. They burn coal to keep their houses warm at night. However, this burning of coal is harming the air quality of the neighborhood. Both Paddy and Mick could install air filters on their chimneys. These filters cost $50 each. Each filter provides a social benefit of $80, but those benefits are divided equally among Paddy and Mick. If both Paddy and Mick install
the filters, together they will _____.
a. gain $10
b. gain $0
c. lose $20
d. gain $30
c
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According to the text, the net public debt to Gross Domestic Product (GDP) ratio is currently about
A) 10%. B) 25%. C) 60%. D) 120%.
The Earned Income Tax Credit is a federal program that
A. provides cash assistance to the nonworking poor. B. provides in-kind assistance to minimum wage workers. C. provides cash assistance to firms that hire single mothers living in poverty. D. increases wages for the working poor. E. increases the wages of minorities.
If a country is currently producing at a production point such that the trade line has a slope that is flatter than the slope of the PPC at the same point, then
A) the country can get greater gains from trade if it moves production away from the good on the vertical axis. B) the country can get greater gains from trade if it moves production toward the good on the vertical axis. C) the country cannot improve on its gains from trade. D) There are no gains from trade in this example.
In the 1990s, President Clinton worked for
A. the introduction of student loans. B. tax credits and deductions for education. C. the GI Bill. D. the creation of the Pell Grant.