Reference no: EM13174083
1. when the government increases taxes to provide traditional public goods, such national security, there tends to be
a. widespread benefits and costs
b. widespread costs and concentrated benefits
c. concentrated benefits and costs
d. widespread benefits and concentrated costs
e. widespread costs and either widespread or concentrated benefits
2. agricultural subsidies in the united states are paid for by
a. consumers of the product
b. taxpayers and consumers
c. other industries
d. special taxes
e. import tariffs
3. marginal external cost equals marginal private cost minus marginal social cost
a. true
b. false
4. marginal external costs are
a. additional uppriced costs imposed on society by producing one more unit of a good
b. the cost of damaged goods
c. the additional cost of imported goods
d. the total cost of society of producing a good
e. the marginal cost divided by the marginal revenue
5. Taxes and in kind transfers make the distribution of income more unequal
a. true
b. false
6. On average. college graduates earn significantly more income than those with less education and the disparity tends to widen into middle age
a. true
b. false
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