Suppose that production of a good creates a negative externality. An excise tax equivalent to the difference between the marginal social cost and the marginal private cost of production can correct the inefficiency
a. True
b. False
A
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An increase in potential GDP ________ aggregate supply and ________
A) decreases; shifts the AS curve rightward B) increases; shifts the AS curve rightward C) decreases; shifts the AS curve leftward D) increases; shifts the AS curve leftward E) has no effect on; does not shift the AS curve
According to Figure 6.1, the period from 1996 to 2011 is particularly remarkable for the slow growth of ________
A) productivity B) labor input C) output D) capital input
A nation’s standard of living depends on its population and labor productivity.
Answer the following statement true (T) or false (F)
A company switches from a medical plan that covered all medical costs to a medical plan with a high deductible, making employees responsible for the first $1,500 of health care costs. Other things the same, a higher deductible is expected to:
A. increase both medical claims and hospital admissions. B. reduce both medical claims and hospital admissions. C. increase medical claims and reduce hospital admissions. D. reduce medical claims and increase hospital admissions.