Pigovian taxes are used to counterbalance:
A. negative externalities.
B. positive externalities.
C. network externalities.
D. They could be used to counteract any of these.
A. negative externalities.
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If the current shareholders begin to believe that the prices of the stocks are likely to rise in the future, the supply curve of shares will:
a. shift to the right. b. become perfectly elastic. c. slope downward. d. shift to the left. e. become perfectly inelastic.
Which central coordination task has claimed the most attention of central planners?
a. Output selection b. Production planning c. Distribution d. Rationing
If foreigners are restricted in their ability to buy investments in a country then that government is imposing:
A. controls on capital inflows. B. fixed exchange rates. C. controls on capital outflows. D. controls on both capital inflows and outflows.
The Lucas supply function, ________ the assumption that expectations are rational, implies that ________ policy changes will have no effect on real output.
A. in combination with; unanticipated B. in contrast to; unanticipated C. in combination with; announced D. in contrast to; announced