One way to make consumers take a positive externality into account in their demand decision is to:
A. place a tax on the item.
B. subsidize the purchase of the item.
C. tax the producers of the item.
D. None of these statements is true.
B. subsidize the purchase of the item.
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Suppose Canada has a population of 30 million people, and a labor force participation rate of 2/3. Furthermore, suppose the natural rate of unemployment in Canada is 7%. If the current number of unemployed people is 1 million people, what can we conclude about Canada's economy?
A. There is no frictional unemployment present in the economy. B. The unemployment rate is below the natural rate of unemployment. C. There is cyclical unemployment present in the economy. D. The unemployment rate is above the natural rate of unemployment.
Which of the following is true?
i. The supply of a good is inelastic if when its price changes, the percentage change in the quantity supplied exceeds the percentage change in price. ii. Price elasticity of supply equals the percentage change in the quantity supplied divided by the percentage change in price. iii. If demand is price elastic, a rise in price leads to a decrease in total revenue. A) only i B) only ii C) only iii D) i and ii E) ii and iii
A long term goal of the EU member countries is to integrate their economies into a single economic entity with a common currency as well as common trade policies and internal factor mobility
Indicate whether the statement is true or false
The debit side of the current account includes the imports of
a. goods only b. goods and services c. services only d. services and resources only e. financial assets