Which of the following represents the most expansionary fiscal policy?
A. A $10 billion tax cut.
B. A $10 billion increase in government spending.
C. A $10 billion tax increase.
D. A $10 billion decrease in government spending.
B. A $10 billion increase in government spending.
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Refer to Table 4-3. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the price of polo shirts decreases from $15 to $10
A) producer surplus will fall from $13 to $3. B) consumers will buy no polo shirts. C) there will be a shortage of polo shirts. D) the marginal cost of producing the third polo shirt will increase to $25.
Mandatory motorcycle helmet laws are designed to reduce the severity of injuries resulting from motorcycle involvement in traffic accidents. In this sense, these mandatory helmet laws are reducing ________ of risky behavior
A) negative externalities B) the social benefit C) positive externalities D) the private benefit