A consumer's budget set includes all affordable combinations of two goods.
Answer the following statement true (T) or false (F)
True
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Because trucking as an industry involves the generation of pollutants in engine exhaust,
A) the supply curve of trucking services overstates the true cost of providing those services. B) the supply curve of trucking services understates the true cost of providing those services. C) the demand curve for trucking services overstates the true benefit of providing those services. D) the demand curve for trucking services understates the true benefit of providing those services. E) the market for trucking services will always be away from equilibrium by an amount equal to the value of the externality.
A group of legislators agree to vote for a package of otherwise unrelated laws that they individually favor. Which term describes this activity?
a. Pork-barrel spending b. Logrolling c. Political correctness d. Lobbying
An efficient distribution of goods requires that
a. everyone gets an equal share of each good. b. marginal cost equal marginal utility for the last unit produced. c. each person derives the same total utility from the good. d. since tastes differ, every person pays a different price in accordance with different marginal utilities.
Data indicate that the large increase in government spending on income transfers that started with the War on Poverty during the latter half of the 1960s has resulted in
a. a substantial reduction in the poverty rate. b. a more equal distribution of income. c. fewer single-parent families because a married couple receives benefits twice as large. d. little change in the official poverty rate.