Imposing a tax on an activity that generates an external benefit will cause participants in the activity to increase the amount of the activity undertaken
a. True
b. False
B
Economics
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By hedging a portfolio, a bank manager
A) reduces interest-rate risk. B) increases reinvestment risk. C) increases exchange-rate risk. D) increases the probability of gains.
Economics
Specifically targeted tax credits are simple and can save administrative costs
Indicate whether the statement is true or false
Economics
Economists assume that when there is a change in supply and/or demand, the market clearing price returns to the equilibrium
A) quickly. B) slowly. C) after a protracted negotiation process. D) after an adjustment period.
Economics
The above figure presents the view of the economy according to
A) Keynesian economics. B) classical economics. C) microanalysis. D) Ricardian economics.
Economics