Lindahl prices for collective consumption goods are _____.
a. are sufficient to achieve political agreement on the optimal level of output
b. are necessary to achieve political agreement on the optimal level of output
c. are sufficient for economic efficiency
d. are necessary for economic efficiency
Question 2
While regressive taxes are considered inequitable, cigarette taxation is popular because _____.
a. it is a sumptuary tax
b. it mainly hurts tobacco farmers in a few Southern states
c. in a lifetime sense it is a progressive tax
d. people are inconsistent
In 2008, the U.S. economy suffered a gaping wound as several trillion dollars were ripped out of it.
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