An inframarginal positive externality _____
a. requires subsidization to reach an optimal level of output
b. requires regulation to reach an optimal level of output
c. requires corrective taxation to reach an optimal level of output
d. requires no action because the optimal level of output has been reached
d
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MacDougall showed in his tests that
A) relatively higher U.S. labor productivity was associated with relatively higher U.K. export ratios. B) relatively higher U.K. labor productivity was associated with relatively higher U.K. export ratios. C) labor productivity ratios and export ratios were not associated with each other. D) None of the above.
Which of the following is not a reason for differences in total factor productivity across countries?
A) Differences in the size of population. B) learning by doing. C) barriers to the adoption of new technology. D) inefficient allocation of factors of production across firms in some countries.
What is one reason the federal government might "bail out" farmers in flood prone areas of the country?
A) Such flooding is not diversifiable and therefore only non-profit entities, such as the federal government, can cover the risks. B) Such flooding is diversifiable, but insurance company CEOs are more concerned with their stock-holder wealth than the well-being of farmers. C) Such flooding is diversifiable, but the market for such insurance policies cannot clear without the assistance of the International Community. D) Such flooding is known to happen on a regular basis and therefore there is no "risk" to be insured against.
Which of the following examples would most likely be subject to selection bias?
A. 60 members of a 100-member neighborhood homeowners' association vote to approve funding for private security patrols in their neighborhood. B. 500 University of Wisconsin students are polled on their opinion about a possible tuition hike at their school. C. 750 National Rifle Association members are questioned to obtain the public's opinion about pending federal legislation regarding stricter gun control laws. D. 1,000 registered voters in Nashville are called and asked who they are planning to vote for in the upcoming Nashville mayoral election.