An effluent fee
A) is a reward to companies using production methods that create positive externalities.
B) is also called a pollution subsidy.
C) gives a firm the right to pollute if it pays a tax on what it discharges.
D) is intended to influence the market by increasing supply and decreasing price.
Answer: C
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Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to real GDP and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. Real GDP rises, and nominal value of the domestic currency falls. b. Real GDP falls, and nominal value of the domestic currency rises. c. Real GDP rises, and nominal value of the domestic currency remains the same. d. Real GDP rises, and nominal value of the domestic currency rises. e. There is not enough information to determine what happens to these two macroeconomic variables.
In perfect competition:
a) Short run supernormal profits are competed away by firms leaving the industry. b) Short run supernormal profits are competed away by firms entering the industry. c) Short run supernormal profits are competed away by the government. d) Short run supernormal profits are competed away by greater advertising.
When an employer that controls the demand for labor opposes a union that controls the supply of labor, it is called a ________________.
Fill in the blank(s) with the appropriate word(s).
The answer to, "What goods are to be produced?" deals with:
A) who gets the goods. B) how tastes and preferences are determined. C) how resources are combined to produce goods and services. D) the kinds and quantities of goods and services produced.