A politician says that the government should tax behavior they want less of and subsidize behavior they want more of. This is an example of
A) cynical behavior in modern democracies.
B) failing to consider the alternatives available to the government.
C) a concern that people are not rational when they make decisions.
D) using incentives to alter behavior.
D
Economics
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If the net benefit of Project A is $20 and that of Project B is $15, switching from Project A to Project B:
A) reduces the net benefit by $5. B) increases the net benefit by $5. C) reduces the net benefit by $15. D) increases the net benefit by $15.
Economics
An appropriate countercyclical policy in the face of a recession would be for the Fed to raise legal reserve requirements, raise the discount rate, and buy government securities
Indicate whether the statement is true or false
Economics