Thousands of Japanese fishermen have used gill nets to catch tuna with great efficiency. Many environmentalists have objected to this practice since many other marine animals (such as dolphins and sharks) are killed by the nets and discarded by the fishermen. Which of the following statements is most accurate?
a. A private solution can be reached through negotiation between the fishermen and the
environmentalists.
b. A private solution is not practical due to the large number of individuals affected.
c. The market price of tuna is higher than the socially optimum price of tuna.
d. A private solution to this problem would not affect the price of tuna.
b
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An increase in a fixed exchange rate from $2.00 per pound to $2.10 per pound is called a(n) ________ of the pound
A) devaluation B) appreciation C) revaluation D) depreciation
Which of the following might explain a decrease in national saving when the tax rate on savings is reduced?
a. its income effect on saving and its effect on the government budget b. its income effect on saving but not its effect on the government budget c. its effect on the government budget but not its income effect on saving d. neither its income effect on saving nor its effect on the government budget
A key benefit for nations in a politically integrated currency union such as the United States is the existence of fiscal federalism. What is the status of fiscal federalism in the Eurozone?
A) It is almost nonexistent because few fiscal transfers take place. B) It is thriving and encompasses many aspects of the economy. C) Most believe it currently lags the United States, but the situation is very fluid and will change soon. D) Fiscal federalism is a concept that has relevance only in the United States because each Eurozone nation is completely independent.
Means tested government programs:
A. require recipients to undergo skills testing for benefits. B. are rarely used in the US. C. are as effective as unconditional cash transfers. D. define eligibility for benefits based on recipients' income.