One of the characteristics of a carbon tax is that it would
A. place the heaviest burden on high-income families.
B. tend to encourage more usage of cheaper fuels like coal and less usage of expensive energy sources like nuclear energy.
C. encourage energy consumers to invest in energy efficiency.
D. have little effect on the emission of greenhouse gases.
Answer: C
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A critical assumption for the simple money multiplier (1/ rrd) to hold is that
a. banks do not hold excess reserves. b. the public does not increase their level of currency holdings. c. the required reserve ratio has to be greater than one. d. both a and b. e. all of the above.
To construct GDP, exports:
a. and imports must be subtracted. b. and imports must be included. c. must be included and imports must be ignored. d. must be included and imports must be subtracted.
Which of the following actions can prevent migration of individuals from one health insurance policy to another?
a. Lowering the opportunity costs of switching from one policy to another. b. Fixing a uniform premium rate for all individuals under one type of policy. c. Conducting an interview of the people before placing them under different policies. d. Setting up a norm requiring all individuals to purchase the same coverage.
The nucleus of the Federal Reserve System is
a. its Board of Governors, which meets in Washington, D.C. b. the Committee of Wall Street, which convenes in New York c. the Discount Rate Committee d. the Thrift Institutions Advisory Council e. the Council of Economic Advisers, which meets regularly with the President