Consider a demand curve for reckless driving, for which the "price of reckless driving" is interpreted as the probability of having a fatal accident. When could safer cars lead to an increase in total number of driver fatalities?
a. Always.
b. Never.
c. When the demand curve is relatively flat.
d. When the demand curve is relatively steep.
c. When the demand curve is relatively flat.
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A country reports the total expenditures on the fixed CPI basket for the past three years
The cost of the CPI basket in 2010 was $23,000, the cost of the CPI basket for the reference base period, 2011, was $23,805, and the cost of the CPI basket in 2012 was $24,500. The CPI for 2010 is A) 96.6. B) 100.0. C) 103.5. D) 106.5. E) 23.0.
Which of the following is an advantage of open market operations over other Federal Reserve policy tools?
a. Use of the other tools must be approved by the President. b. Use of the other tools must be approved by Congress. c. Open market operations are more precise. d. Open market operations do not change interest rates. e. The U.S. Treasury and the Fed work together to undertake open market operations.
Which of the following best reflects the ability-to-pay philosophy of taxation?
A. An excise tax on coffee B. An excise tax on gasoline C. A progressive income tax D. A tax on residential property
If the MPS rises, then the MPC will:
What will be an ideal response?