An effluent fee is an example of
A) a government policy to correct for an external benefit.
B) a government policy to promote the production of a product with an external cost.
C) a government policy to promote the production of a product with an external benefit.
D) a government policy to correct for an external cost.
Answer: D
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How is the AA schedule derived?
A) The AA schedule has a positive slope because an increase in output leads to a depreciation of the currency. B) The AA schedule has a negative slope because an increase in output leads to a decrease in the domestic interest rate. C) The AA schedule has a negative slope because an increase in output leads to an increase in the domestic interest rate and a domestic currency appreciation. D) The AA schedule has a positive slope because an increase in the money supply leads to an increase in the domestic interest rate. E) The AA schedule has a positive slope because a decrease in output leads to a depreciation of the currency.
Per capita income in China is approximately ________% of the U.S. level
A) 17 B) 80 C) 40 D) 5
A price ceiling is
A) the lowest price a seller can charge without losing all of its customers. B) a legal minimum price below which a good or service cannot be sold. C) a legal price above which a good or service cannot be sold. D) a nonprice rationing device.
On a production possibility frontier, the idea that production and consumption are limited is expressed by
A) the rate at which the frontier slopes downward B) the rate at which the frontier slopes upward C) the items on the X and Y axes D) the frontier itself