Having the government issue permits that allow polluting
A. would decrease the levels of pollution.
B. is an example of a command-and control regulation.
C. would penalize companies that were good at curbing their pollution.
D. has been very ineffective in curbing pollution.
A. would decrease the levels of pollution.
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Ron regularly deposits $200 each week into a savings account, which earns 3% interest per year. This month he decides instead to invest $200 into the stock market. What is the opportunity cost of Ron's decision to invest rather than save?
A) $200 B) The 3% interest he could have earned by depositing another $200 into his savings account C) The difference between the rate of return he enjoys in the stock market and the 3% interest return he could have earned by depositing that $200 into his savings account D) Zero, because Ron already had the $200
Assume that national income = $5,000 . C = $1,000 + 0.75(Y), and intended investment = $300 . Then
a. saving at Y = $0 is $1,000 b. saving at Y = $0 is also $1,000 + 0.75 (Y) because S = C in equilibrium c. there will be $50 of unplanned investment in inventories d. actual investment will equal $250 e. national income will decrease
Antitrust laws allow the government to
a. prevent mergers. b. break up companies. c. promote competition. d. All of the above are correct.
The increase in the interest rate due to a higher expected inflation rate is called the __________ effect
A) expectations B) Fisher C) liquidity D) income E) a or b