An advantage of imposing a tax on the producer that generates pollution is that
A) it forces the polluting producer to internalize the external cost of the pollution.
B) the government can keep tabs on exactly what is produced in an industry.
C) it will eliminate pollution.
D) a producer can pass the cost of the pollution to consumers.
Answer: A
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If Slovenia were a large country in world trade, then if it instituted a large set of subsidies for its exports, this must
A) harm its terms of trade. B) have no effect on its terms of trade. C) improve its terms of trade. D) decrease its marginal propensity to consume. E) harm world terms of trade.
The Bretton Woods agreements in 1944
A. established the International Monetary Fund. B. sanctioned world trade on the gold-exchange system. C. allowed nations to devalue their currencies under certain conditions. D. All of the above are correct.
Which one of the following people is structurally unemployed?
A) a Saskatchewan welder who lost her job when her company relocated to B. C. and is currently looking for a job B) a Nova Scotia fishery worker who is searching for a better job closer to home C) an office worker who has lost her job because of a general slowdown in economic activity D) a steel worker who is laid off but who expects to be called back soon E) none of the above
If the country of Deficitland is experiencing trade deficits, they are more likely to cut imports of
a. beef b. cocoa c. coffee d. capital goods e. soybeans