A cut in the income tax rate designed to encourage household consumption is an example of:
(a) Expansionary demand-side policy;
(b) Contractionary demand-side policy;
(c) Expansionary supply-side policy;
(d) Contractionary supply-side policy.
Answer: (a) Expansionary demand-side policy;
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The optimal combination of goods for a consumer to purchase is shown by
A. any intersection of the indifference curve and the budget line. B. the point where the budget line touches the vertical axis. C. a point of tangency between the budget line and the indifference curve. D. the point at which the indifference curve parallels the horizontal axis. E. the intersection of two indifference curves.
Jamestown's early years were marked by
a. a focus on futile "get rich quick" schemes. b. collective operations under which production methods and consumption were shared. c. lack of local control over production decisions. d. extremely high mortality rates. e. All of the above.
Discuss some of the reasons why monopoly power is considered undesirable
Government subsidies for education are motivated by
A. concerns over disease. B. concerns over creating jobs for teachers. C. concerns over equity. D. concerns over choice.