In a competitive market, a pollution tax increases the equilibrium price of the polluting good, decreases the equilibrium quantity, and decreases the volume of waste.
Answer the following statement true (T) or false (F)
True
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A contractionary monetary policy raises the real interest rate, causing the domestic currency to ________, thereby ________ net exports
A) appreciate; raising B) appreciate; lowering C) depreciate; raising D) depreciate; lowering
In the circular-flow diagram, which of the following items flows from households to firms through the markets for the factors of production?
a. goods and services b. land, labor, and capital c. dollars spent on goods and services d. wages, rent, and profit
Adibok knows that it produces and sells high quality athletic shoes. Wurkout knows that it produces and sells low quality athletic shoes. According to the signaling theory of advertising,
a. both Adibok and Wurkout have incentives to spend large amounts of money on advertising for their athletic shoes. b. Adibok has an incentive to spend a large amount of money on advertising for its athletic shoes, but Wurkout does not. c. Wurkout has an incentive to spend a large amount of money on advertising for its athletic shoes, but Adibok does not. d. neither Adibok nor Wurkout has an incentive to spend a large amount of money on advertising for their athletic shoes.
Micro and macro failures of the marketplace never justify government intervention.
Answer the following statement true (T) or false (F)