Command-and-control regulation tends to:
a. increase the costs of production to reflect the social costs
b. increase the deadweight loss caused by negative externalities.
c. decrease the cost of production of firms.
d. increase subsidies in order to increase the private benefit of consumption.
a
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The seven leaders of the Federal Reserve System headquartered in Washington, D.C. constitute the:
A. Board of Governors. B. Federal Reserve Bank of Washington, D.C. C. Federal Open Market Committee. D. Federal Economic Advisory Board.
Suppose Dunkin' Donuts buys coffee beans from a wholesaler for $1. They package the beans up and sell them as their own "Dunkin' Donut" beans for $10 at their store. How much value is added to the economy?
A) $10 B) $11 C) $13 D) $15
Refer to Figure 5-5. Suppose the current market equilibrium output of Q1 is not the economically efficient output because of an externality. The economically efficient output is Q2. In that case, diagram shows
A) the effect of an excess demand in a market. B) the effect of a subsidy granted to producers of a good. C) the effect of a positive externality in the consumption of a good. D) the effect of a negative externality in the consumption of a good.
Keynesian economists worked at perfecting techniques of economic stabilization in order to fine-tune the economy
Indicate whether the statement is true or false