Wichita is building a convention center and financing it with revenues raised from a city hotel tax. Local politicians assert that the convention center is essentially free for Wichita residents because out-of-town visitors are paying for it
Someone who is practicing the economic way of thinking would disagree because
A) the hotel tax may lead to a decline in visits to Wichita.
B) they believe that Wichita does not need a new convention center.
C) the hotel tax may reduce commercial property values in the area.
D) there are other projects that could be undertaken with the tax funds.
E) the convention center may not pass a marginal cost-benefit test.
D) there are other projects that could be undertaken with the tax funds.
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A reduction in consumption spending due to the lay-off of 2,000 defense-industry workers?will ultimately have a larger overall impact on real GDP due to the multiplier effect
Indicate whether the statement is true or false