A subsidy for pollution not produced can induce producers to pollute at the efficient level.
A. True
B. False
C. Uncertain
A. True
You might also like to view...
All of the following are preconditions for economic growth EXCEPT
i. property rights. ii. democracy. iii. free markets. A) i only B) ii only C) iii only D) Both i and ii E) i, ii, and iii
The above table shows the short-run total product schedule for the campus book store. With which employee do diminishing marginal returns set in?
A) the 9th employee B) the 6th employee C) the 5th employee D) the 2nd employee
Answer the following questions true (T) or false (F)
1. An expansionary monetary policy by the Federal Open Market Committee would cause interest rates to decline and the exchange rate to depreciate, ceteris paribus. 2. Comparative advantage is a monetary concept and is affected by changes in exchange rates or inflation. 3. The mercantilist philosophy argues that nations can become rich and powerful by exporting more than they import.
The user cost of capital is given by the following formula, where pK is the real price of capital goods, d is the depreciation rate, and r is the expected real interest rate.
A. uc = d pK/r B. uc = pK/(r + d) C. uc = (r + d)pK D. uc = (r + d)/pK