One way that government can increase the production of goods that have external benefits is to
A) tax the activity.
B) subsidize the activity.
C) use marketable permits.
D) Both answers B and C are correct.
B
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Money is used as a ________ when you visit the local farmers' market and compare prices across different vendors
A) means of payment B) unit of account C) store of value D) medium of exchange E) measure of barter
When the price of toilet paper falls by 20 percent, the quantity of toilet paper demanded rises by 10 percent. Calculate the price elasticity of demand. Is the demand for toilet paper elastic, inelastic, or unit elastic?
What will be an ideal response?
Suppose that the demand curve for apples is downward sloping and the price per pound decreases from $1.25 to $1.00. We would then expect
A) the demand for apples to decrease. B) the quantity of apples demanded to fall. C) the demand curve to shift toward the origin. D) the quantity of apples demanded to increase.
Problems with collective decision-making and economic inefficiency in government are subjects that are studied in an area of economics called public:
A. Finance B. Choice C. Policy D. Interest