In order to increase society's total welfarer, a production process that produces a negative externality should be

a. taxed
b. provided by the government
c. ignored
d. subsidized
e. exported


A

Economics

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In the long run, the representative firm in monopolistic competition tends to have

A. economic profits B. no product differentiation. C. a perfectly elastic demand curve. D. excess capacity.

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What are the three functions of money?

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When the Federal Reserve began paying interest on excess reserves, the effect on monetary policy was

A. making open market operations less effective. B. adding a new tool to monetary policy. C. reducing the effect of a change in reserve requirements. D. eliminated the need for the Federal Funds Market.

Economics

In the chain of cause and effect involving monetary policy:

a. A decrease in the rate of interest will decrease aggregate demand b. An increase in the money supply will decrease the rate of interest c. A decrease in excess reserves will increase the money supply d. A decrease in aggregate demand will increase output

Economics