Recall the Application about the external cost of young drivers to answer the following question(s).Recall the Application. In order to fully internalize the external costs of collisions:
A. drivers with different collision rates would pay different taxes.
B. all drivers would pay a tax equal to the average cost of collisions.
C. taxes paid would be determined by number of miles driven.
D. taxes paid would decrease with the age of the driver, so that the oldest drivers paid the lowest taxes.
Answer: A
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The Leontief Paradox
A) failed to support the validity of the Heckscher-Ohlin model. B) supported the validity of the Ricardian theory of comparative advantage. C) supported the validity of the Heckscher-Ohlin model. D) failed to support the validity of the Ricardian theory. E) proved that the U.S. economy is different from all others.
According to the theory of liquidity preference, the interest rate adjusts to balance the supply of, and demand for, loanable funds
a. True b. False Indicate whether the statement is true or false
In the short run, a change in the nominal exchange rate brings an equivalent change in the real exchange rate
Indicate whether the statement is true or false
The marginal benefit of the pollution abatement curve
A) has a zero slope. B) has a positive slope. C) slopes upward. D) slopes downward.