According to the assignment rule, which of the following policy mixes is appropriate for a country with high inflation, a balance of payments surplus, and fixed exchange rates?
A. Expansionary fiscal policy and expansionary monetary policy
B. Contractionary fiscal policy and expansionary monetary policy
C. Contractionary fiscal policy and contractionary monetary policy
D. Expansionary fiscal policy and contractionary monetary policy
Answer: B
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Which of the following statements concerning the distinction between positive and normative economics is TRUE?
A) Positive statements are concerned with what is, while normative statements are concerned with what someone thinks should be. B) Positive statements are concerned with what people think, while normative statements are concerned with what people do. C) Positive statements are true while normative statements are false. D) Positive statements are concerned with what is while normative statements are concerned with what will be.
Although monopoly has lower output than competition, the level of output is efficient.
Answer the following statement true (T) or false (F)
Total physical product is maximized if marginal physical product is zero
a. True b. False Indicate whether the statement is true or false
Two companies, Dirty Inc. and Filthy Inc., each of which has access to 5 different production processes, each of which has a different cost and produces a different amount of pollution. The daily costs of the processes and the number of tons of smoke emitted are shown in the table below.ProcessABCDE(smoke/day)(4 tons/day)(3 tons/day)(2 tons/day)(1 tons/day)(0 tons/day)Cost to Dirty Inc. ($/day)$100$200$380$740$1,460Cost to Filthy Inc. ($/day)$400$430$490$580$700 Suppose pollution is initially unregulated. If the City Council imposes a tax of $91 per day on each ton of smoke emitted, then what will be the total cost to society of the resulting reduction in pollution?
A. $270 B. $360 C. $90 D. $180