A pollution tax is:
A. a positive externality used to offset a negative one.
B. a price per unit of discharge of pollution.
C. a tax on pollution control equipment.
D. itself a form of negative externality.
Answer: B
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Countervailing duty cases involve allegations of
A) foreign monopoly pricing. B) foreign export subsidies. C) foreign barriers to U.S. exports. D) All of the above.
The purpose of the commitment by the Fed to keep the federal funds rate at zero for a long period of time is to
A) lower the long term interest rates. B) lower the short term interest rates. C) increase the long term interest rates. D) increase the short term interest rates.
If the interest rate were to fall, we expect that
A) the supply of money will fall. B) the supply of money will rise. C) autonomous expenditures will rise. D) the demand for money will fall.
On the graph above, the amount of inventory depletion will be greatest if the economy is moving from point ________ to point ________
A) A; D B) D; A C) D; C D) B; A E) B; C