When government tries to change social norms, they:
A. might run an extensive ad campaign.
B. are trying to change people's opinions about their actions.
C. try to get consumers to internalize the cost or benefit they cause by their market decision.
D. All of these statements are true.
D. All of these statements are true.
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If a corporate bond with face value of $1,000 has an interest rate of eight percent paid once a year for a term of 30 years, what is the size of the annual coupon payment?
A) $1,000 B) $300 C) $80 D) $8
Imposing a unit excise tax on the final sale of a good or service can be displayed graphically as
A) a vertical shift upward of the demand curve. B) a vertical shift upward of the supply curve. C) a vertical shift downward of the demand curve. D) a vertical shift downward of the supply curve.
Voluntary programs for reducing pollution
a. have been more successful in the United States in encouraging recycling than any other type of program. b. are most appropriate when surveillance and enforcement are impractical. c. work most reliably when voluntary reduction of pollution over a long period is encouraged. d. are enforced by legal authority.
Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the real risk-free interest rate and net nonreserve international borrowing/investing in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises and net nonreserve international borrowing/investing becomes more positive (or less negative). b. The real risk-free interest rate falls and net nonreserve international borrowing/investing becomes more negative (or less positive). c. The real risk-free interest rate rises and net nonreserve international borrowing/investing becomes more negative (or less positive). d. The real risk-free interest rate and net nonreserve international borrowing/investing remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.