The optimal public policy to correct for negative pecuniary externalities is _____
a. corrective taxation and compensation
b. subsidization
c. corrective taxation without compensation
d. nothing
d
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Refer to Figure 7.1. If Angus chooses to earn the most money, he will receive a daily payoff of
A) $100. B) $350. C) $550. D) $700.
Which of the following countries has introduced a training or apprenticeship plan in order to reduce youth unemployment?
a. South Africa b. Spain c. India d. Greece
The major overall purpose of the Federal Reserve System is to
a. keep the discount rate flexible. b. insure the deposits of persons holding funds with banking institutions. c. regulate the money supply and, thereby, provide a monetary climate that is in the best interest of the economy. d. regulate the levels of excess reserves held by member banking institutions.
In the circular-flow diagram, which of the following items represents a payment for a factor of production?
a. interest b. capital c. spending by households on goods d. spending by households on services