Production that generates positive externalities typically produces _______ than the socially optimum and this is because benefits to ________ are not taken into account by the market
a. more; free riders
b. less; free riders
c. less; government
d. more; government
e. more; antipolluters
B
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If OPEC increases its price of oil, and still the demand for oil decreases by a very small amount, we can conclude that the demand for oil is
A) relatively elastic. B) relatively inelastic. C) perfectly elastic. D) perfectly inelastic.
According to the purchasing power parity theory, in the long run
a. the exchange rate between any two currencies should be equal all over the world b. the value of the dollar should equal the value of the pound which should equal the value of the yen c. inflation rates should equalize around the world d. interest rates should equalize around the world e. the exchange rate between the Canadian dollar and the British pound should reflect differences in price levels between Canada and Britain
Increases in unemployment compensation:
What will be an ideal response?
In 1934, the President was given the authority to reduce United States tariffs up to 50 percent provided other nations would also reduce their tariffs under the:
A. Underwood Tariff Law B. Smoot-Hawley Tariff Act C. Reciprocal Trade Agreement Act D. General Agreement on Tariffs and Trade