Effective methods of dealing with externalities would include
a. taxing firms that generate beneficial externalities.
b. imposing fines equal to the difference between MSC and MPC on firms that generate beneficial externalities.
c. giving a subsidy per unit equal to the difference between MSC and MPC to firms that generate beneficial externalities.
d. restricting the output of firms that generate beneficial externalities.
c
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On the island of Yap, 5 canoes have a value of one stone wheel known as a fei. What function of money do fei serve in this example?
A. store of value B. medium of exchange C. medium of deferred payment D. unit of account
Which of the following shifts short-run aggregate supply left?
a. an increase in price expectations b. an increase in the actual price level c. a decrease in the money supply d. a decrease in the price of oil
The total variable cost curve
A) increases as output increases. B) shows the variable cost of production given current factor prices. C) starts at the origin. D) All of the above
Higher U.S. interest rates cause the value of the dollar to:
A. rise, making U.S. goods relatively cheaper on world markets. B. rise, making U.S. goods relatively more expensive on world markets. C. fall, making U.S. goods relatively cheaper on world markets. D. fall, making U.S. goods relatively more expensive on world markets.