Government regulators know that pollution is a problem in Cleveland. However, information on the social cost of this externality is difficult to come by
Which of the following statements best describes how this information problem might manifest itself? a. Well-intentioned regulators monitor a handful of polluting factors and are unable to determine how much they contribute to the problem. b. Well-intentioned regulators decide to shut down the plants and start government production in state-of-the-art factories. c. Well-intentioned regulators impose a collective tax that ends up reducing output beyond the optimal level of output.
d. Well-intentioned regulators fail to do anything because they are afraid of doing the wrong thing.
c
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Which term below refers to "the accumulation of goods produced in the past that are being used in the present to produce new goods and services"?
a. inventories b. products c. factors of production d. capital
(Last Word) Which of the following best describes why unemployment rates remained high well after the end of the Great Recession of 2007-2009?
A. Falling wages discouraged workers from taking on new employment. B. The 20 percent of U.S. workers employed at minimum-wage jobs were unable to take wage cuts. C. Workers that were initially cyclically unemployed, like construction workers, effectively became structurally unemployed as they needed to transition to new industries to find work. D. Deflation in the economy discouraged spending, preventing output and employment from recovering.
When the price of tea decreases 7%, quantity demanded increases 12%. The price elasticity of demand for tea is ________ and total revenue from tea sales will ________.
A. inelastic; decrease B. elastic; increase C. elastic; decrease D. inelastic; increase
Refer to the information provided in Figure 4.4 below to answer the question(s) that follow.
Figure 4.4Refer to Figure 4.4. The price of oil in the United States would be $125 per barrel, and the United States would import 6 million barrels of oil per day if the United States levies ________ per barrel tariff on imported oil.
A. no B. a $25 C. a $50 D. a $100