Where pollution is concerned, if an automobile driver considers only the internal costs of his actions, he is apt to
A. be making a positive contribution to the greater community.
B. use resources very carefully and in small quantities.
C. drive too much and use up more scarce resources than he would if he had to cover all his costs.
D. garage his car and drive very seldom.
Answer: C
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The federal government ran a budget deficit of approximately $1.3 trillion in 2011
Indicate whether the statement is true or false
In 2012 a severe drought raised the price of corn. For a farmer in Canada who harvested a normal crop because the farm was not affected directly by the drought, the increase in the price of corn
A) increases the farmer's producer surplus. B) decreases the farmer's producer surplus. C) does not affect the producer surplus because this change is a movement along the farmer's supply curve and not a shift of the farmer's supply curve. D) increases producer surplus only if the farmer's supply is completely inelastic.
The sale of government securities by the Fed leads to
A) a decrease in bank reserves. B) a contraction in bank lending. C) a decrease in the monetary base. D) All of the above answers are correct.
The short-run Phillips curve is the relation between inflation and unemployment that holds for a given natural rate of unemployment and a
A) given rate of inflation. B) given expected rate of inflation. C) given level of unemployment. D) given expected level of unemployment.