In the case of a technology spillover, the government can encourage firms to internalize a positive externality by
a. taxing production, which would decrease supply.
b. taxing production, which would increase supply.
c. subsidizing production, which would decrease supply.
d. subsidizing production, which would increase supply.
d
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The Commons Problem could be addressed by
A) charging a fee proportional to the use of the common property. B) charging a fee unrelated to the use of the common property. C) charging no fee. D) prohibiting the use of the common property.
If both the demand for and the supply of computers are increasing, which of the following statements is TRUE?
A) The consumer should buy a computer now since the price will be higher in the future. B) The consumer should wait and buy a computer later since the price will be lower in the future. C) The price of a computer will be the same in the future as it is now. D) It is impossible to know, given only this information, whether the prices of computers will go up or down in the future.
The sticky-price theory implies that
a. the short-run aggregate-supply curve is upward-sloping. b. an unexpected fall in the price level induces firms to reduce the quantity of goods and services they produce. c. menu costs influence the speed of adjustment of prices. d. All of the above are correct.
Between 1994 and 2015, farmland prices were
A. curiously unrelated to commodity (particularly corn and soybean) prices. B. decreasing sharply. C. closely related to commodity (particularly corn and soybean) prices. D. decreasing slowly.