Which of the following would cause a leftward shift in the investment function?
A) technological progress
B) a reduction in the rate of interest
C) optimistic expectations about business conditions
D) an increase in business taxes
Answer: D) an increase in business taxes
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With marketable permits to pollute, efficiency can be obtained if
A) the regulator knows the marginal cost schedule of every firm. B) firms with low marginal costs of eliminating pollution sell their permits. C) firms with low marginal costs of eliminating pollution buy up more permits. D) only one firm gets the permits to pollute.
Which of the following is possible when the market fails?
A. It is impossible for government intervention to improve the mix of goods and services. B. The mix of goods and services is at the correct point on the production possibilities curve. C. The mix of goods and services is the optimal mix. D. The mix of goods and services is on the production possibilities curve.
The law of one price states that if the costs of transportation are small, then the price of the same good in different countries should be roughly the same.
Answer the following statement true (T) or false (F)
Which of the following is an example of money?
A) currency inside the banks B) currency in your wallet C) credit card used as a payment for a good or service D) a debit card E) checks written as payment for a good or service