A new pollution law requires businesses to pay for inspections of their plants by independent pollution-monitoring firms. What effect is this likely to have?
A) Increase productivity
B) Increase the capital stock
C) Reduce productivity
D) Increase the demand for labor in those firms
C
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Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product. If Quick Buck and Pushy Sales decide to collude and work together as a monopolist, then together they should produce ________ units per month and charge ________ per unit.
A. 3,000; $1 B. 2,000; $2 C. 4,000; $2 D. 1,000; $3
Using the Keynesian model, the effect of a decrease in the effective tax rate on capital would be to cause ________ in the real interest rate and ________ in output in the short run
A) a decrease; a decrease B) a decrease; no change C) an increase; an increase D) no change; a decrease
The Open Market Trading Desk is
A) another name for the Federal Open Market Committee. B) an organization of private traders in government securities. C) the area on the floor of the New York Stock Exchange set aside for bond trading. D) a group of private securities traders that the Fed has selected to participate in open market operations.
During the financial crisis, which type of risk was the biggest problem faced by investment banks?
A) interest-rate risk B) currency risk C) hedging risk D) credit risk