Which of the following might be a method that the government could use to promote the production of a good that generates positive externalities?
A. financing additional production
B. subsidies
C. regulations
D. All of these are correct.
Answer: D
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Labor productivity is defined as
A) the amount of workers per unit of input. B) the amount of input per worker. C) the increase in output per unit of machinery. D) the amount of output per worker.
Which of the following policy tools did the Fed create in 2008 to address the financial crisis?
i) quantitative easing ii) credit easing iii) open market operations A) ii only B) i and ii C) i and iii D) i only E) ii and iii
In the above figure, the price received by the seller before the tax is ________ per compact disc, and the price received and kept by the seller after the tax is ________ per compact disc
A) $20; $20 B) $20; $10 C) $30; $20 D) $30; $10
When competitive market equilibrium determines a level of output for which the marginal social cost exceeds the marginal social benefit, the private equilibrium results in
a. a positive externality b. a Coase equilibrium c. underproduction of the product d. a market failure e. external benefits