When the government reduces my income tax by $0.30 for every $1.00 that I contribute to a charity, the government is effectively
a. alleviating the negative externalities that are associated with charitable giving.
b. imposing a negative externality on those who do not pay income taxes.
c. encouraging a private solution to a positive-externality problem.
d. encouraging a private solution to a negative-externality problem.
c
Economics
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Which classical economist observed that, when the money supply expanded after gold discoveries, it took some time for prices to rise, and in the meantime, the economy enjoyed higher employment and production?
a) David Hume b) Joan Robinson c) Adam Smith d) David Ricardo
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Who are minimum wages designed to help? Do they succeed? What is their effect on society?
What will be an ideal response?
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