Which of the following is false with reference to subsidies?
a. They reduce the cost of production
b. They transfer the income from tax payers to the exporters.
c. They mean the nation is exporting products in which it does not have comparative advantage.
d. They can lead to inefficiencies.
a
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Game theory analysis of macro policy suggests that as voters become more short-sighted
A) policy makers will be tempted to raise taxes. B) policy makers will be forced to balance the budget. C) policy makers will adopt policies today to achieve balanced budgets in the future. D) all of the above E) none of the above
Suppose that the government of New York state promises to decrease taxes to a firm if it decides to stay in New York instead of moving to another state. This policy on the part of the state constitutes ________, to make the ________ of the firm remaining in New York.
A) an incentive; marginal benefit exceed the marginal cost B) an incentive; marginal cost exceed the marginal benefit C) a command; marginal benefit exceed the marginal cost D) a command; marginal cost exceed the marginal benefit
When the amount supplied is greater at each price, there is a(n)
A. upward movement along the supply curve. B. downward movement along the supply curve. C. leftward shift in the supply curve. D. rightward shift in the supply curve.
Which of the following is an example of bypassing the market through regulation to achieve environmental protection?
A. Privatization. B. Pollution fines. C. Green taxes. D. Command-and-control standards.