If an abatement standard is set to achieve allocative efficiency at the national level, then
a. that standard necessarily achieves allocative efficiency in all regions
b. the standard cannot be optimal at the regional level unless the MSB and MSC for all regions are identical to one another
c. all regions will abate below the optimal level
d. at that abatement standard, all regions will face MSC higher than MSB
b. the standard cannot be optimal at the regional level unless the MSB and MSC for all regions are identical to one another
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Suppose the intersection of the IS and LM curves is to the left of the FE line. What would most likely eliminate a disequilibrium among the asset, labor, and goods markets?
A) A rise in the price level, shifting the LM curve up and to the left B) A fall in the price level, shifting the LM curve down and to the right C) A rise in the price level, shifting the IS curve up and to the right D) A fall in the price level, shifting the IS curve down and to the left
When the price of one product falls,
a. consumers' real income will increase. b. consumers will buy less of that product. c. consumers will not change their buying patterns. d. consumers' real income will decrease.
If a nation restricts imports, it will:
A. harm each individual citizen in that nation. B. decrease the total value of goods and services produced in that nation. C. benefit each individual citizen in that nation. D. increase the total value of goods and services produced in that nation.
The annual percentage increase in the purchasing power of a financial asset is called the:
A. inflation rate. B. real rate of return. C. nominal interest rate. D. real interest rate.