To achieve the socially optimal level of pollution, the biggest polluters should be targetted for the greates reduction in pollution
a. True
b. False
B
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An entrepreneur is
A) the rate of return on capital. B) a legal form of business. C) one who takes risks and makes innovations in organizing a firm. D) the rate of discount.
A conclusion of the theory of rational expectations is that, in the short run, the impact of discretionary fiscal policies designed to shift the AD curve will:
a. result in no net change in AD once people's expectations adjustments have been accounted for b. shift AD in the opposite direction intended once people's expectations adjustments have been accounted for. c. be anticipated and compensated for, causing no significant effect on real or nominal GDP or employment. d. have to be a surprise to change real output in the intended direction.
Countries that fix the foreign exchange value of their currencies, while following a highly expansionary monetary policy, will
a. be unable to maintain both the fixed-exchange rate and the full convertibility of their currency. b. generally experience rapid rates of economic growth. c. make it easier for their citizens to engage in international trade. d. have relatively low rates of domestic inflation.
Suppose that a multiple regression model of residential housing prices uses four dummy variables. Which of the following is the most likely independent variable?
A. three zip codes B. the answer can not be determined C. five neighborhoods D. four school districts E. two cities