1.Taxes can induce the optimal quantity of a good that has a negative externality

( ) True

( ) False

2. Because fans do not pay the de jure incidence of a tax on concessions, they will not be negatively effected by this tax.

( ) True

( ) False

3. Suppose the marginal propesnsity to consume is .8 and the marginal propensity to import is .2. Suppose a stadium renovation increased revenue by $6,000,000,000. What would the total benefit of this construction be for the city?

4. Suppose the marginal propesnsity to save is .1 and the marginal propensity to import is .2. Suppose a stadium renovation increased revenue by $6,000,000,000. What would the total benefit of this construction be for the city?