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D Question 2 2 pts You want to sell your old iPad because you no longer use it, and your cousin wants to give you $200 for it
Question 6 Which of the following is true about the resource market? It facilitates the exchange of goods and services betwee
Question 11 2 pts Your best friend buys you lunch on your birthday. You think this was not a free lunch because: even if you
Question 20 2 pts Which of the following would shift the production possibilities frontier outward? O A reduction in ineffici


Question 30 2 pts An external benefit is a benefit from an activity that falls on a third party which is not involved in the
Question 32 Gasoline taxes illustrate the benefits-received principle of taxation. True O False
Question 42 Demand for an inferior good decreases as consumer income increases. True False

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Answer #1

30) True, the external benefit can be defined as the benefit that the third person not directly involved in the transaction gets. the statement is true.

32) False, Gasoline tax is not an example of benefit received principle of taxation, gasoline is used directly and indirectly in many different goods and not all of the people that benefit from that good are paying the taxes.

42) True, demand for an inferior good will increase as the income of the people increase.

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