A method of forcing a company to internalize the total cost of production is
A) to impose a tax on the company to reduce production.
B) to provide a subsidy to encourage production.
C) for government not to interfere in the company's activities.
D) to force the company to reduce the wages it pays to its employees.
Answer: A
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A bank's revenue comes from all of the following EXCEPT
A) interest earned on vault cash. B) fees for services provided. C) interest on loans. D) interest on securities.
The phrases "once in, always in" and "once in, always grows" aptly describe a criticism of the Keynesian policy prescription for
a. the self-correcting nature of the economy b. moderating aggregate output c. closing a recessionary gap with government spending d. the balanced budget multiplier e. closing an inflationary gap
In long-run equilibrium for the monopolistically competitive firm, the equilibrium point
a. at the highest part
b. close to the highest part
c. at the lowest part
d. close to the lowest part
Refer to the scenario above. Which of the following will happen if she keeps the dress for herself?
A) The GDP of her country will increase by $180. B) The trade deficit of her country will decrease. C) The GDP of her country will remain unchanged. D) The trade surplus of her country will decrease.