Which of the following is an example of an externality?
A. Pollution.
B. Inflation.
C. Government failure.
D. Laissez faire.
Answer: A. Pollution
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According to the textbook, when a foreign government provides aid to a poor nation, it
A) interferes in the domestic affairs of the poor nation. B) behaves in the interest of the poor nation. C) pursues the global interest. D) does all of the above. E) does none of the above.
Growth in labor productivity in health care has been ________ labor productivity in the economy as a whole
A) slightly faster than B) approximately equal to C) less than half as fast as D) almost twice as fast as
Suppose the income tax rate is 0 percent on the first $10,000; 10 percent on the next $20,000; 20 percent on the next $20,000; 30 percent on the next $20,000; and 40 percent on all income above $70,000
Family A has income of $82,000 while Family B has income of $37,000. What are the marginal tax rates faced by the two families?
Jen spent her weekly allowance of $110 on clothes and cosmetics. Assume that she had allocated $100 to shoes and $10 to lipsticks and is in equilibrium. What can you conclude from her purchase decisions?
a. She likes shoes ten times as much as she likes lipsticks b. Jen liked the last pair of shoes ten times as much as the last tube of lipstick c. Jen purchased hundred pairs of shoes for each tube of lipstick d. She likes lipsticks ten times as much as she likes shoes e. She purchased one pair of shoes for each tube of lipstick