An economist is most likely to support all of the following methods to address the negative externalities created by the waste from newspapers except:
A. requiring publishers to cut the volume of newspapers generated but allowing them to sell certificates so that others can meet those requirements for them.
B. having the cost of the externality be paid by the government.
C. ensuring that the social cost of buying a newspaper is reflected in its price.
D. taxing the suppliers of newspaper by the pound.
Answer: B
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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.
A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary
Between 2015 and 2016, the CPI of a small nation rose from 182 to 185. If household incomes rose by 3% during that period of time, which of the following is true?
A) The purchasing power of household income remained constant between 2015 and 2016. B) The purchasing power of household income rose between 2015 and 2016. C) The purchasing power of household income fell between 2015 and 2016. D) The CPI cannot be used to determine how the purchasing power of household income changes over time.
Which of the following is the best example of physical capital used to produce a textbook?
a. the expertise and writing ability of the author b. the ink used in the printing press c. the printing press d. the property on which the publisher's office is located e. the time spent by editors reviewing the textbook
International capital flows in an open economy have the effect of
A. increasing the power of fiscal policy. B. reducing the power of fiscal policy. C. reducing the power of fiscal policy in an expansion, and increasing it in a contraction. D. increasing the power of fiscal policy in an expansion, and reducing it in a contraction.