The government is considering a policy to reduce air pollution by restricting the use of “dirty” fuels by factories. In deciding whether to implement the policy, how, if at all, will the likely effects of this policy impact real GDP?
What will be an ideal response?
Answer: The cost of implementing pollution-reducing improvements will decrease real GDP due to the closing of some "dirty" factories, while the value of cleaner air will have no direct impact on real GDP
Economics
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Why do economists abstract, and is it appropriate?
What will be an ideal response?
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A market failure:
A. is a source of inefficiency in an imperfectly competitive economy. B. can always be corrected by government intervention. C. cannot be corrected. D. is a theoretical proposition that has never been proven to exist.
Economics
Price supports can help farmers to better compete internationally
Indicate whether the statement is true or false
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The fundamental cause of monopoly is
Economics