A recent study suggested that moderate wine drinking may actually benefit one's health. If this information leads to an increased demand for wine, we would expect
a. both the price and quantity of wine sold to increase.
b. both the price and quantity of wine sold to decrease.
c. the price to decrease and the quantity of wine sold to increase.
d. the price to increase and the quantity of wine sold to decrease.
A
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One policy the government can use to remedy the effects of pollution caused by the production of a good is to
a. lower the price of the good b. create positive externalities to compensate for the negative ones c. levy a tax on each unit of the good produced d. create free riders e. increase the production of the polluting good
A pollution tax:
A. is a method used to internalize external costs. B. will not affect the price of the good being produced. C. does not affect the quantity of a good demanded. D. is a method used to externalize internal costs.
If the government increases spending while holding taxes constant, we expect
A. interest rates to rise. B. planned real investment spending by businesses to increase. C. a decrease in real saving as consumers follow suit and also increase borrowing. D. an increase in investment spending by businesses too, as they anticipate future economic growth.
Which of the following reasons offered for why crime fell in the 1990s does the Brennan Center suggest had a significant impact?
A. The increased use of the community policing. B. The increased use of the death penalty. C. The increased use of gun buyback programs. D. The increased effective length of prison sentences.