Vaccination against a disease helps in preventing the spread of the disease. Which of the following can help in increasing the number of people vaccinated to the socially optimal level?
A) A corrective tax
B) An income tax
C) A life insurance
D) A health tax
A
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Economists make use of assumptions, some of which are unrealistic, for the purpose of
a. teaching economics to people who have never before studied economics. b. advancing their political agendas. c. developing models when the scientific method cannot be used. d. focusing their thinking.
The U.N.'s Millennium Poverty Goal is to
A. Keep the number of people in poverty at a constant level. B. Cut the percentage of people in extreme poverty in half worldwide. C. Reduce the percentage of people in severe poverty in the poorest nations. D. Cut the absolute number of people in extreme poverty in half worldwide.
When a regulator allows a monopolist to set its price equal to long-run average cost, the regulator is practicing
A) marginal cost pricing. B) operating cost pricing. C) average cost pricing. D) optimal cost pricing.
Refer to the diagram. Suppose that aggregate demand increased from AD 1 to AD 2 . For the price level to stay constant:
A. the aggregate supply curve would have to shift rightward.
B. the aggregate supply curve would have to shift leftward.
C. real domestic output would have to remain constant.
D. the aggregate supply curve would have to be vertical.