Which of the following is an advantage of earmarked taxes?
a. They are flexible.
b. They never lead to overproduction.
c. They make it more difficult for politicians to alter the expenditure mix away from their preferences.
d. They make it easier for politicians to alter the expenditure mix to achieve economic efficiency.
c
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The table above shows the marginal costs and marginal benefits of college education. If 20 million students are enrolled, the marginal external benefit is
A) zero. B) $4,000. C) $5,000. D) $7,000.
If Nike and Adidas are faced with the game in the figure, we can see that:
A. Nike has a dominant strategy, but Adidas does not.
B. Adidas has a dominant strategy, but Nike does not.
C. Neither company has a dominant strategy.
D. Both companies have a dominant strategy.
Suppose there is a fiscal contraction. Which of the following is a complete list of the variables that must decrease?
A) consumption B) consumption and investment C) consumption and output D) consumption, output and the interest rate E) consumption, output and investment
At a given output level, a temporary reduction in government purchases will
A. increase desired saving, causing the IS curve to shift down and to the left. B. increase desired saving, causing the IS curve to shift up and to the right. C. decrease desired saving, causing the IS curve to shift up and to the right. D. decrease desired saving, causing the IS curve to shift down and to the left.