The figure above provides information for a factory that produces chemicals that pollute a waterway. The waterway is used by water skiers. If the waterway is owned by a water ski club and the Coase theorem applies, then the factory will produce ________ tons of chemicals a week.
A) 1 ton
B) as many tons as possible
C) 3 tons
D) 5 tons
A
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Structural unemployment includes people who become unemployed from
A) changes in the business cycle. B) technological changes. C) going back to school. D) changes in the seasons. E) normal changes in the labor force.
Adverse selection is a situation in which one party to an economic transaction has less information than the other party
Indicate whether the statement is true or false
Macroeconomists are interested in how consumers respond to changes in the market real interest rate because
A) interest rates are an important channel for the effects of monetary and fiscal policies. B) substitution effects and income effects net out in the aggregate. C) of the permanent income hypothesis. D) future income affects current consumption.
If the Federal Reserve Banks goal was to use open market operations to contract the economy it could move from:
A. MS1 to MS3
B. MS3 to MS4
C. MS4 to MS3
D. MS2 to MS3