Suppose the government passed a law, taxing manufacturers according to the amount of pollutants they released into the environment. This law would be an example of which regulatory function of the government?
A) protect consumers
B) promote competiton
C) regulate negative externalities
D) supervise labor and management relations
Ans: C) regulate negative externalities
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Refer to the scenario above. This is an example of ________
A) a mixed strategy game B) an ultimatum game C) a symmetric game D) a prisoners' dilemma game
The case of perfectly elastic demand is illustrated by a demand curve that is
a. vertical. b. horizontal. c. downward-sloping but relatively steep. d. downward-sloping but relatively flat.
Which one of the following is not a barrier to an efficient allocation of resources?
a. Equity considerations b. Free rider effects c. Transactions costs d. Holdout effects e. Poorly defined property rights
Since the Federal Reserve was created, it has:
A. averted all financial panics that could have plagued the U.S. economy. B. improved its skill at securing financial stability. C. averted a few financial panics but not most. D. proved to be much better at preventing international panics than domestic ones.