To correct for a negative externality, a government might impose a uniform tax related only to the physical quantity of pollution if
A) the administrative costs are high.
B) the cost of ascertaining the actual economic costs are relatively small.
C) the economic damages are zero.
D) the economic damages associated with the pollution are different across different locations.
A
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This agency acts like an international lender of last resort to cope with financial instability
A) World Bank B) European Central Bank C) IMF D) International Bank for Reconstruction and Development
M2 includes:
a. Currency in circulation + Reserves of financial intermediaries (e.g., banks) + Checking Accounts + Near Money. b. Currency in circulation + Checking Accounts c. Currency in circulation + Cash inside financial intermediaries + Deposits at the central bank + Checking Accounts + Near Money. d. Currency in circulation + Checking Accounts + Near Money. e. Monetary base plus currency in circulation.
Education and on-the-job training are sources of human capital
a. True b. False Indicate whether the statement is true or false
A Minnesota farmer buys a new tractor made in Iowa by a German company. As a result,
a. U.S. investment and GDP increase, but German GDP is unaffected. b. U.S. investment and German GDP increase, but U.S. GDP is unaffected. c. U.S. investment, U.S. GDP, and German GDP are unaffected because tractors are intermediate goods. d. U.S. investment, U.S. GDP, and German GDP all increase.