A policy that directly targets the externality:
A. encourages innovation, which matches the goal to stop production of the externality.
B. gives firms incentives to find different ways to do things, rather than pay for the right to create the externality.
C. Both of the above statements is true.
D. None of these statements are true.
C. Both of the above statements is true.
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If the economy is operating below its full employment level, the Fed can
A) increase aggregate supply by raising the price level. B) increase aggregate demand by selling bonds and raising interest rates. C) increase aggregate demand by stimulating the demand for money. D) increase aggregate demand by increasing the rate of growth of the money supply.
Pizza and tacos are substitutes, and the price of a pizza increases. Which of the following correctly indicates what happens?
A) The demand for pizzas decreases and the demand for tacos increases. B) The demand for both goods decreases. C) The quantity of tacos demanded increases and the quantity of pizza demanded decreases. D) The quantity of pizza demanded decreases and the demand for tacos increases. E) The demand for each decreases because both are normal goods.
Economists have found that union workers earn about 30 to 40 percent more than similar workers who do not belong to unions
a. True b. False Indicate whether the statement is true or false
A household is helped, on the ________ side, when its net profits or wages rise and is helped, on the ________ side when the prices of goods and services decrease.
A. flow; stock B. uses; sources C. sources; uses D. input; output