It is clear that government provision of education is not necessary _____
a. because of the existence of private schools
b. from the size of positive externalities
c. because of the lack of asymmetrical information between parents and teachers
d. because education externalities are negatively inframarginal
a
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Assuming that the government can act immediately before the multiplier takes effect, then to offset a reduction in investment by $1 billion, government purchases must be:
A. decreased by $1 billion. B. increased by $1 billion. C. increased by $2 billion. D. increased by $0.5 billion.
When an economist uses the term "cost" referring to a firm, the economist refers to the
A) price of the good to the consumer. B) explicit cost of producing a good or service but not the implicit cost of producing a good or service. C) implicit cost of producing a good or service but not the explicit cost of producing a good or service. D) opportunity cost of producing a good or service, which includes both implicit and explicit cost. E) cost that can be actually verified and measured.
What is an effluent fee? Graphically, show how an effluent fee can correct an externality
What will be an ideal response?
Which of the following would likely cause aggregate demand to shift to the right?
A. Consumer confidence regarding future income increases B. The government builds new highways C. A tax credit for small businesses is issued D. All of these are likely to cause aggregate demand to shift to the right.