Rising prices help control the process of resource depletion by
A. encouraging consumption and waste.
B. stimulating more efficient use of the depletable resource.
C. disincentivizing resource-saving innovation.
D. stimulating resource imports.
Answer: B
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Latin American economies have become relatively more closed to international trade since 1985
Indicate whether the statement is true or false
Starting from long-run equilibrium, a large decrease in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; lower; potential B. expansionary; higher; potential C. recessionary; lower; potential D. recessionary; lower; lower
A man may be preferred to a woman by an employer who will make a substantial investment in the training of the employee because
A. most employers are sexist and think that women belong in the home caring for children. B. as a group women tend to have a weaker attachment to the labor force than men. C. employers have observed that women are less productive than men on most jobs. D. employers are afraid women will disrupt the workplace by distracting the male employees.
External costs occur because
A. Firms make a choice other than the most cost-efficient production method. B. Private costs do not reflect the full costs to society. C. All costs are absorbed by the firm. D. Government failure increases costs for the firm.