When the economy experiences a bust, the government knows exactly which policies will spur an economic recovery
a. True
b. False
Indicate whether the statement is true or false
False
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When new technologies make cleaner production possible,
A) emissions would fall under a system of fees, but would not fall under a system of transferable emissions permits unless the government bought back some of the permits. B) emissions would fall under a system of permits, but would not fall under a system of fees unless the government raised them. C) the price of transferable permits would rise. D) the quantity of transferable permits would rise. E) the quantity of transferable permits would fall.
The budget deficit refers to how much has been borrowed:
a. in one particular year. b. over time. c. against Social Security. d. to pay interest on loans.
Which of the following would NOT be considered a macroeconomic topic?
A) the reasons for a decline in the price of crude oil B) the cause of a downturn in the economy C) the effect of the government budget deficit on inflation D) the causes of inflation and unemployment
If the supply of a good is perfectly inelastic, then suppliers will bear the full burden of an excise tax
A. no matter how elastic the demand for the good is. B. only if demand is perfectly elastic. C. only if demand is perfectly inelastic. D. only if the government forbids them to raise the price of the good.