To counteract steep declines in the birth rate, some countries have offered stipends to pregnant women and subsidies for parents who have a second child. These financial supports are examples of ______.
a. factor payments
b. opportunity costs
c. positive incentives
d. human capital
c. positive incentives
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An increase in the price level causes
A) the money demand curve to shift to the left. B) a movement up along the money demand curve. C) a movement down along the money demand curve. D) the money demand curve to shift to the right.
The quantity sold in a market will decrease if the government decreases a
a. binding price floor in that market. b. binding price ceiling in that market. c. tax on the good sold in that market. d. All of the above are correct.
Each citizen in a small town suffers 5 units of irritation for each bushel of leaves burned in the town. The charge for hauling a bushel of leaves to the land fill is a fee equal to 20 units of irritation. There are 25 people in the town, each of whom minimizes personal irritation and has 10 bushels of leaves. Propose two solutions for the town that will lead to efficiency.
What will be an ideal response?
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.