Opportunism may occur when
A) both parties have limited information.
B) both parties have full information.
C) one party has information the other does not.
D) All of the above.
C
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An increase in government expenditures by $100 (unmatched by an increase in taxes) would, if the MPC = 0.9, result in an increase in national income by
a. $1,000 b. $9,000 c. $900 d. $190 e. inadequate information is given
Which of the following is a difference between an income tax and an excise tax on gasoline? a. An income tax exemplifies the ability to pay principle, while an excise tax on gasoline exemplifies the benefit principle. b. An income tax is based on a marginal tax rate, while an excise tax on gasoline is based on an average tax rate. c. An income tax is proportional, while an excise tax on
gasoline is progressive. d. An income tax increases consumer surplus, while an excise tax on gasoline increases producer surplus.
Which of the following best illustrates your marginal benefit from studying?
A. The knowledge you gain from studying 2 hours a night for a month
B. The best things forgone by studying 2 hours a night for a month
C. What you are willing to give up to study for one additional hour
D. What you must give up to be able to study for one additional hour
In which price range of the accompanying demand schedule is demand elastic?
A. $4-$3.
B. $3-$2.
C. $2-$1.
D. Below $1.