A possible solution to the problems of external benefits is
A. to restrict the amount of the good through direct government regulation.
B. to tax those receiving the extra benefits.
C. production of the good by government.
D. effluent fees.
Answer: C
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The U.S. tax code allows taxpayers to deduct the value of charitable contributions from their taxable income
Explain if this is an example of an incentive, and what effect this policy is likely to have on the amount of charitable contributions in the United States.
The market price can sometimes be difficult to identify due to which of the following?
A. Sale prices and negotiated prices B. The laws of supply and the law of demand C. Equilibriums and opportunity costs D. Satiation and zero prices
Which of the following is not a major function of the Federal Reserve System?
A) lender of last resort B) clearing checks between banks C) setting income tax rates D) controlling the money supply
In a system in which all banks have a uniform reserve requirement, the money multiplier is equal to 1 divided by the prime rate
a. True b. False Indicate whether the statement is true or false