A uniform tax according to the physical quantities of pollution may not be the appropriate way to correct for an externality because
A. a firm will reduce production.
B. it places a unfair burden on small producers.
C. a uniform tax can only account for social costs and not external costs.
D. it may not adequately account for economic damages.
Answer: D
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The change illustrated in the figure above is part of the transmission process of the Fed's monetary policy
As a result of the increase in the supply of loanable funds, in the short run aggregate demand ________, aggregate supply ________, and potential GDP ________. A) increases; does not change; does not change B) increases; increases; increases C) decreases; increases; increases D) increases; decreases; decreases E) decreases; decreases; decreases
Refer to Table 4-3. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $30, Marko's will produce
A) 0 shirts. B) 1 shirt. C) 3 shirts. D) 4 shirts.
Suppose a bank has $100,000 in deposits, a required reserve ratio of 20 percent, and total reserves of $20,000. Then this bank can make new loans in the amount of
A. $20,000. B. $40,000. C. $0. D. $100,000.
Economists speaking like policy advisers make
a. positive statements. b. descriptive statements. c. claims about how the world is. d. claims about how the world should be.