Pollution rights may be traded if
A. polluters try to hide pollution.
B. administrators are uncertain about Pigouvian taxes.
C. there is no market for pollution.
D. pollution is harmless.
B. administrators are uncertain about Pigouvian taxes.
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In the Keynesian model, what are the effects (on output, the real interest rate, and the price level) of an adverse productivity (i.e., aggregate supply) shock?
What will be an ideal response?
In the perfectly competitive market, individual firms exert no effect on the market price. Therefore, the firm's marginal revenue curve is:
a. indeterminate. b. an upward-sloping curve. c. a downward-sloping curve. d. the same as the firm's demand curve.
How does the size of the 2007–2009 recession compare with the Great Depression of the 1930?
What will be an ideal response?
Mickey got a raise from $14 an hour to $20 an hour. As a result of the wage increase, Mickey desires to work more hours and take less hours of leisure. For Mickey
A. the substitution effect dominates the income effect. B. the substitution effect must be zero. C. the substitution effect must equal the income effect. D. the income effect dominates the substitution effect.