Many economists, both liberal and conservative, were critical of much of the early environmental legislation. An important reason for the economists' critique was that economists:
A. trusted the market to solve all problems of resource use.
B. worried about fairness of regulations more than noneconomists did.
C. worried that the costs sometimes were greater than the benefits.
D. thought the goals of the legislation were wrong.
Answer: C
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A rightward shift of long-run aggregate supply without any change in aggregate demand
A) results in a lower price level. B) increases the price level along with an increase in real GDP. C) will leave real GDP unchanged. D) increases the price level without any change in real GDP.
In the new classical model, the aggregate supply schedule depends on
a. the expected level of the money stock. b. the expected price level. c. the expected values of fiscal policy variables and other possible determinants of aggregate demand. d. Both a and c e. All of the above
Which elasticity measures producers' responsiveness to a change in price?
A. Price elasticity of demand B. Cross-price elasticity C. Price elasticity of supply D. Income elasticity of supply
Which of the following is a shortcoming of GDP?
a. GDP excludes changes in inventories. b. GDP includes an estimate of illegal transactions. c. GDP excludes nonmarket transactions. d. GDP excludes business investment spending.