Each of the following provides incentives to reduce a negative externality except:
a. a merger with affected firms.
b. subsidizing consumption of the good being produced.
c. bargaining among firms.
d. taxation of the externality.
b
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Suppose two individuals, Pooh and Piglet, desire protection (provided by Tigger) for their community, The Hundred Acre Wood, from heffalumps. Protection is a public good
The marginal cost of protection as well as Piglet's and Pooh's marginal benefits from protection are in the table above. What is the quantity of protection that achieves the maximum net benefit? A) 1 hour per day B) 2 hours per day C) 3 hours per day D) 4 hours per day
During the month of May, 10 million workers moved from being classified as "unemployed" to being classified as "employed." As a result
A) the labor force participation rate rose. B) the unemployment rate rose. C) the unemployment rate fell. D) the labor force participation rate fell.
The U.S. labor movement started
A) with local craft unions composed of workers who engaged in a particular trade or skill, such as baking, carpentry or plumbing. B) during the Civil War. C) after World War I. D) with the Knights of Labor, an organized group of both skilled and unskilled workers.
Tariffs are government policies designed to encourage international trade
a. True b. False