If the production of a good generates external ________, the government could increase efficiency by ________ production of the good.
A. benefits; taxing
B. costs; subsidizing
C. costs; increasing
D. benefits; subsidizing
Answer: D
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The Fed's purchase of government securities could
A) increase loans made by banks. B) be an effective anti-inflationary policy. C) decrease the price level and have no effect on real GDP. D) decrease bank reserves.
Which of the following would cause the money supply in the United States to decrease?
a. An increase in reserve requirements b. A decrease in the discount rate c. A purchase of U.S. government bonds by the Federal Reserve d. An increase in the world supply of gold
If an average cost curve is U-shaped, then:
a. costs per unit remainconstant throughout the entire range of production. b. costs per unit fall throughout the entire range of production. c. costs per unit increase throughout the entire range of production. d. costs per unit first rise, then reach a maximum, and then begin to fall as output is increased. e. costs per unit first fall, then reach a minimum, and then increase as output is increased.
When people borrowing more with good interest rate
What will be an ideal response?