Which of the following is not a potential drawback to public provision of public goods?
a. Public provision lacks clear signals about the value of the good being produced, possibly leading to under and over provision of the goods.
b. Many collective consumption goods might be overproduced private goods.
c. Public provision often implies taxation, which creates an excess burden that might overwhelm any efficiency gains.
d. Many collective consumption goods are really impure private goods and thus the efficient level of output is never reached.
d
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The U.S. Customs Service reclassified imports of compact trucks (like the Toyota Tacoma) from "cab and chassis with some final assembly needed" to "complete or unfinished trucks." As a result of this reclassification, a tariff of _____ was applied, and U.S. prices of Japanese compact trucks rose by _____.
a. 25%; 25% b. 25%; more than 25% c. 25%; less than 25% d. 4%; more than 4%
An increase in the riskiness of corporate bonds will ________ the yield on corporate bonds and ________ the yield on Treasury securities, everything else held constant
A) increase; increase B) reduce; reduce C) increase; reduce D) reduce; increase