Corrective taxes that are imposed upon the producer of a nasty smell can be successful in reducing that smell because the tax makes the producer
a. externalize the positive externality.
b. externalize the negative externality.
c. internalize the positive externality.
d. internalize the negative externality.
d
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The Keynesian macroeconomic model states that
A) changes in technology generate business cycles. B) the economy is inherently unstable and government intervention is required to maintain continued economic growth. C) fluctuations in the quantity of money are responsible for most economic recessions. D) markets work efficiently to produce the best macroeconomic outcomes. E) the economy is fairly stable.
Since 2001, the Gini coefficient
a. has shown little variation. b. has dropped substantially. c. has doubled. d. has shown greater income equality.
Which of the following would encourage an outward shift of the PPF?
(a) Outward emigration of entrepreneurs; (b) A decrease in demand as the economy slips into recession; (c) The level of capital investment falls; (d) Inward migration of skilled workers.
Which of the following statements is most accurate?
A. Central bank statements in developed countries differ in length but are similar in the speed with which policy changes are announced. B. Central bank statements in developed countries are similar both in length and in the speed with which policy changes are announced. C. Central bank statements in developed countries differ both in length and in the speed with which policy changes are announced. D. Central bank statements in developed countries are similar in length but differ in the speed with which policy changes are announced.