Which of the following might be a method that the government could use to correct a negative externality?
A) an effluent fee on waste from the production of goods that create negative externalities
B) government subsidies to producers of goods that create negative externalities
C) financing additional production of goods that create negative externalities
D) encouraging overallocation of resources of production of goods that create negative externalities
Answer: A
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Non-paying activities in economics are referred to as:
A) relief. B) leisure. C) free time. D) unemployment.
An appropriate test of the effectiveness of an economic model is
A) the number of variables contained within the model. B) the model's ability to predict future economic activity. C) the number of economists who have worked on the model. D) the number of assumptions which the economist has made.
Today's demand curve for gasoline could shift in response to a. a change in today's price of gasoline
b. a change in the expected future price of gasoline. c. a change in the number of sellers of gasoline. d. All of the above are correct.
Because of the rise of global competition and free trade,
a. antitrust policy may be less necessary than previously thought. b. U.S. industrial concentration poses more of a threat to consumers. c. U.S. markets are becoming less competitive. d. U.S. manufacturers are seeking fewer trade barriers.