As a result of technology spillovers: Taxes may move us closer to the efficient output level in such industries.
a. Other members of society bear external costs
b. Too much production takes place in the high technology areas.
c. Taxes may move us closer to the efficient output level in such industries.
d. None of the above are true.
d
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Suppose the Chinese government regulates the price of food and forbids firms from setting a higher price. In this case the government is setting a
A) price floor. B) price ceiling. C) quota. D) tax.
Which of the following is not correct?
a. A risk averse person might be willing to hold stocks. b. Other things the same, a portfolio with the stocks of a large number of companies has less risk. c. Other things the same, the larger a portion of savings a person invests in stocks, the greater his expected return. d. Diversification can eliminate market risk but not firm-specific risk.
The Consumer Price Index (CPI) is:
A. a fixed-expenditure-weight index used to measure changes in the GDP Deflator. B. the least commonly used measure of inflation. C. an example of an index that uses variable expenditure weights. D. a fixed-expenditure weight-index used to measure changes in purchasing power for households.
A decrease in interest rates by the Fed based on a given and unchanged policy reaction function represents a ________ the aggregate demand curve, and lower interest rates resulting from a downward shift in the Fed's policy reaction function represents a ________ the aggregate demand curve.
A. movement down; shift right of B. shift left of; movement up C. shift left of; shift right of D. movement up; movement down