Suppose the government of a town of 2,000 people implements a tax on each of its 2,000 citizens to raise $1,000 for a sculpture that will be placed in the common area of a 5-person neighborhood
Each of the 5 people in the small neighborhood will receive $120 in benefits from the sculpture. This tax is likely to A) generate a great deal of opposition from taxpayers.
B) generate a great deal of opposition from the 5 people in the affected neighborhood.
C) generate little opposition from a majority of its taxpayers.
D) generate the desirable social outcome.
C
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The field of macroeconomics developed when economists looked for causes of:
A. the wealth of nations. B. the Great Depression C. poverty and inflation. D. World War I.
In an economy, 43 million people are employed, 3 million are unemployed, and 4 million are not in the labor force. What is the employment-to-population ratio?
A) 86 percent B) 92 percent C) 93 percent D) 6.5 percent
Upon buying a car with airbags, Indy begins to drive recklessly. This is an example of the:
A. principal-agent problem. B. adverse selection problem. C. moral hazard problem. D. free-rider problem.
If the painting firms in a city sign a contract outlining a pricing plan, they are involved in
A) price competition. B) a legal form of business contract in the United States. C) collusion. D) price regulation.