What alternative to restrictions on capital inflows do some economists recommend to minimize the possibility of increased lending booms and risk taking by domestic banks?
What will be an ideal response?
Some economists point out that this problem could be made less severe by improving bank regulation and supervision in emerging-market countries. In this way, capital inflows could still serve as important financial mechanisms for channeling foreign investment to countries with promising investment opportunities.
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The incidence of sales tax is determined by the
A) level of government (for example, local, state, or federal) which imposes the tax. B) federal government in all cases. C) greed of the sellers. D) price elasticities of supply and demand.
Describe the main problem with rate of return regulation and name an alternative regulatory scheme that has been devised to deal with that problem
What will be an ideal response?
A regional airport decides to extend a runway, increasing the amount of noise pollution on nearby homes. Assume that an optimal corrective tax can be applied
Should that tax be paid as compensation to the nearby homeowners? How might compensating the homeowners change their (and potentially others) incentives?
Standard of living tends to rise in proportion to the growth rate in labor productivity
Indicate whether the statement is true or false