Refer to the information provided in Figure 30.1 below to answer the question(s) that follow.
Figure 30.1Refer to Figure 30.1. Suppose the economy is currently at Point B. If investors are optimistic about future growth in aggregate output, investment
A. moves to Point A.
B. moves to Point C.
C. moves to Point D.
D. stays at Point B.
Answer: C
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Refer to Figure a. If ? (the probability of state S) decreases, the x-intercept for the solid constant expected consumption line:
A. increases.
B. decreases.
C. does not change.
D. The answer cannot be determined without more information.
An example of the command-and-control approach to environmental policy is:
A. placing a tax on freon to reduce its use and the corresponding CFC emissions (which contribute to the ozone hole). B. requiring car producers to install new air conditioners that do not use freon. C. allowing coal producers to buy and sell permits to allow CFC emissions. D. allowing individuals to sue freon producers if CFC emissions exceed a government-set standard.
Why is the supply of oil more price elastic in the long run?
A) New deposits are found. B) Better extraction technology is developed. C) Firms have the ability to change the amount of all inputs. D) All of the above.
The World Bank's view of the effectiveness of industrial policies in East Asia is that, in general, they
A) hindered growth. B) had little or no effect on growth. C) encouraged growth. D) are the main factor in the success of the East Asian economies. E) worked in Japan and Korea, but not in the other countries.