What is one problem with using a Clarke tax to finance government provision of a public good?
a. People tend to overstate their preferences for the public good when a Clarke tax is imposed.
b. The government may decide against providing the public good, even when it would be efficient to do so.
c. The Clarke tax is not a fair tax, because everyone pays the same amount regardless of income.
d. The revenues collected from the Clarke tax may not cover the cost of the public good.
d. The revenues collected from the Clarke tax may not cover the cost of the public good.
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Ceteris paribus, in a closed economy, if consumers become more optimistic ________
A) autonomous consumption would decrease B) the equilibrium interest rate should increase C) saving should increase D) all of the above E) none of the above
A seller's reservation price is generally equal to:
A. the seller's opportunity cost of producing an additional unit. B. the seller's marginal benefit from producing an additional unit. C. the buyer's reservation price. D. the market price.