To correct for negative externalities, the government
A) should allow the price system do the correction.
B) can impose a tax.
C) can provide a subsidy to consumers.
D) should create a public good.
Answer: B
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The United States is an example of a mixed economy.
Answer the following statement true (T) or false (F)
In the circular flow, an increase in the money supply tends to result when
a. planned I equals planned S. b. planned I is less than planned S. c. planned I is greater than planned S. d. there is a surplus government budget.
Assume Mimi's budget constraint is shown in the graph shown. If earrings cost $7, then hairbands must cost:
A. $5.25. B. $7. C. $4. D. $3.50.
Which of the following statements is least accurate about the period between the end of World War I and 1930?
a. African Americans migrated in large scale from the north to the south. b. There was a significant increase in activity by the Ku Klux Klan. c. A Constitutional Amendment gave women the right to vote. d. A Constitutional Amendment prohibited the manufacture, distribution, and sale of intoxicating liquor.