Unlike national income

Unlike national income - Unlike national income, personal...

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Unlike national income, personal income includes retained earnings, corporate income taxes and social insurance contributions, and excludes interest and transfer payments received by households from government. excludes retained earnings, corporate income taxes, social insurance contributions, and interest and transfer payments received by households from government. excludes retained earnings, corporate income taxes and social insurance contributions, and includes interest and transfer payments received by households from government. includes retained earnings, corporate income taxes, social insurance contributions, and interest and transfer payments received by households from Which of the following statements is correct? Private goods are rival in consumption and excludable. Public goods are rival in consumption but nonexcludab Collecting tolls on all roads is a practical solution to tra Governments serve their citizens best when they refrain failures. Which of the following statements is not correct? Government policies may improve the market's allocation of resources when negative externalities are present. Government policies may improve the market's allocation of resources when positive externalities are present. A positive externality is an example of a market failure. Without government intervention, the market will tend to undersupply products that produce negative externalities. Moving to another question will save this response. New home construction is included in the consumption component of GDP. True False An increase in nominal U.S. GDP necessarily implies that the United States is producing a larger output of goods and services. True Fals
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e Which of the following statements is not correct? A patent is a way for the government to encourage the production of a good with technology spillovers. A tax is a way for the government to reduce the production of a good with a negative externality. A tax that accurately reflects social costs produces the socially optimal outcome. Government policies cannot improve upon private market outcomes. Which of the following represents a transfer payment? You transfer $1,000 from your bank account to a mutual fund. The government sends your grandfather his Social Security check. The bank transfers $10 in quarterly interest to your savings account. Your employer automatically transfers $100 each month from your wages to a non- taxable medical spending account. Which of the following would not be considered a negative externality? Smelter, Inc. creates steel and pollution. Your friend buys a new puppy that barks every night. You have an adverse reaction to a medication your doctor prescribed for you. Your neighbor plays loud music that you dislike through stereo speakers set up on his deck. The steps involved in calculating the consumer
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This note was uploaded on 02/06/2012 for the course ECON 2106 taught by Professor Bergin during the Spring '09 term at College of the Mainland.

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Unlike national income - Unlike national income, personal...

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