Governments often ________ activities that generate external ________.

A. subsidize; benefits
B. subsidize; costs
C. simultaneously tax and subsidize; costs
D. tax; benefits


Answer: A

Economics

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The Sherman Act prohibits:

a. contracts in restraint of commerce b. monopolization of an industry c. price discrimination d. a and b e. a, b, and c

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An example of a transfer payment is:

A. a federal income tax refund. B. a Social Security payment. C. the $3 donation to the Wildlife Fund you make on your tax return. D. the taxes corporations pay on profit.

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The price elasticity of demand for business air travel is -.80 and the price elasticity of demand for leisure air travel is -1.60. Therefore, the demand for leisure air travel

A. is unrelated to consumers' incomes. B. is more elastic than the demand for business travel. C. is less elastic than the demand for business travel. D. is inelastic.

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Increases in pollution regulations would

A. decrease aggregate demand. B. decrease short-run aggregate supply. C. increase aggregate demand. D. increase short-run aggregate supply.

Economics