Who are the only ones not affected when a Pigouvian subsidy is implemented for a positive externality in a market?
A. Producers
B. Consumers
C. Those affected by the externality
D. All of these groups are affected when it becomes internalized.
D. All of these groups are affected when it becomes internalized.
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What actions could be taken to stabilize output in response to a large decrease in U.S. net exports?
a. increase taxes or increase the money supply b. increase taxes or decrease the money supply c. decrease taxes or increase the money supply d. decrease taxes or decrease the money supply
Japan could shift its production possibilities curve outward (to the right) if
A. it could buy some islands in the Pacific Ocean, thus increasing its available amount of land. B. it could devote more of its output to military goods. C. it could devote more of its output to producing consumer goods. D. all of the choices are true.
Today, the average U.S. tariff is 1.6 percent of the value of imported goods, which is very low by historical standards.
Answer the following statement true (T) or false (F)
Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward