The incentive for people to avoid paying for a resource when the benefits they obtain from the resource are unaffected by whether they pay is known as ___________________.
a. the Coase Theorem.
b. an upstream tax.
c. the holdout effect.
d. free market environmentalism.
e. None of the above.
Ans: e. None of the above.
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When firms decide how much labor to hire, one of the factors that influences them is the
A) nominal wage rate plus the inflation rate. B) nominal wage rate divided by the price level and then multiplied by 100. C) nominal wage rate minus the inflation rate. D) real wage rate plus the inflation rate. E) nominal wage rate divided by the inflation rate and then multiplied by 100.
If the 1999 salary in 2009 dollars is $174,136, what can we say about it compared to the 2009 income given in the table shown?
A. Although the nominal salary has increased, the amount of purchasing power has remained the same from 1999 to 2009.
B. The increase in salary from 1999 to 2009 was more than inflation during that period.
C. The 1999 salary could buy more goods and services in 2009 than the 2009 salary could buy.
D. All of these statements are true.
A good that is both excludable and rivalrous is a(n):
a. public good. b. club good. c. private good. d. inferior good. e. necessary good.
If the Fed wanted to prevent a change in money demand from affecting real GDP, which of the following rules would be feasible and allow the Fed to attain its goal?
a. Keep government spending constant b. Keep the money supply constant c. Keep money demand constant d. Keep taxes constant e. Keep the interest rate constant