When the government levies a $100 million tax on people's income and puts the $100 million back into the economy in the form of a spending program, such as new interstate highway construction, the:
a. tax, then, generates a $100 million decline in real GDP.
b. level of real GDP expands by $100 million.
c. effect on real GDP is uncertain.
d. tax multiplier overpowers the income multiplier, triggering a rollback in real GDP.
b
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When Major League Baseball players were awarded the right of free agency, no player had to give up their own free agency in order for someone else to get it, and no one could be excluded from free agency
These two characteristics of free agency demonstrate that it meets the criteria of a A) pure public good. B) club good. C) common pool resource. D) pure private good.
Lisa is buying bread and at her current purchases, the marginal utility (in dollars) is less than price. If she wants to optimize, she should
A. reduce bread consumption, thus raising P to the level at which MU = P. B. reduce bread consumption, thus raising MU to the level at which MU = P. C. increase bread consumption, thus raising P to the level at which MU = P. D. increase bread consumption, thus lowering MU to the level at which MU = P.
Suppose Tammy grew up on a farm and is very good at plowing. In addition, suppose she is a popular country singer who earns $4,000 per performance. If her husband Bob can plow (but not as well as Tammy) but he can’t carry a tune, then it would be most efficient if
A. Tammy did both the plowing and the singing. B. Tammy specialized in plowing and Bob in singing. C. Bob did both the plowing and singing. D. Tammy specialized in singing and Bob in plowing. E. they both plowed and sang.
Objects that have value in themselves and that are also used as money:
a. currency b. commodity money c. representative money d. fiat money