Where there are spillover (or external) benefits from having a particular product in a society, the government can make the quantity of the product approach the socially optimal level by doing the following except:
A. Subsiding the buyers of the product
B. Taxing the sellers of the product
C. Subsidizing the sellers of the product
D. Providing the product itself
B. Taxing the sellers of the product
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Suppose the Fed purchases $5,000 in U.S. government securities from the Last National Bank and the Last National Bank's account at the Federal Reserve district bank increases by $5,000 . Which of the following is a result of this transaction? a. The Last National Bank's balance sheet shows a change in the composition of its assets. b. Both the Last National Bank's assets and its liabilities
rise by $5,000. c. Both the Fed's assets and its liabilities fall by $5,000. d. Only the Fed's liabilities change, while its assets remain unchanged. e. This transaction decreases the money supply.
Which of the following might explain a decrease in national saving when the tax rate on savings is reduced?
a. its substitution effect on saving and its effect on the government budget b. its substitution effect on saving but not its effect on the government budget c. its effect on the government budget but not its substitution effect on saving d. neither its substitution effect on saving nor its effect on the government budget
Whenever there is a divergence between social costs and market costs, the result is:
A.) Market power. B.) Market failure. C.) Maximized social welfare. D.) A higher minimum wage.
A raise in the price of a product causes _____.
(A) A decrease in supply. (B) An increase in demand. (C) A decrease in competition. (D) An increase in competition.