The most common method used by the government to control negative externalities is
a. creation of private property rights
b. obligatory controls
c. taxation
d. subsidization
e. nationalization
B
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The rate at which a consumer is willing to give up consumption in one period for additional consumption in another is known as ________
A) the marginal propensity to save B) the marginal propensity to consume C) the marginal rate of substitution D) the average propensity to consume
Assume an Australian importer expects to pay 16,000 Australian dollars (AUD) for $8,000 worth of U.S. goods, but on the shipment date 30 days later, the same volume of U.S. goods costs the Australian importer only 10,000 Australian dollars. This means that between the contract date and the payment date, the exchange rate has changed:
a. from $1 = 1.25 AUD to $1 = 2.0 AUD. b. from $1 = 2.0 AUD to $1 = 1.25 AUD. c. from $1 = 0.8 AUD to $1 = 0.5 AUD. d. from $1 = 0.5 AUD to $1 = 0.8 AUD. e. from $1 = 0.5 AUD to $1 = 2.0 AUD.
The substitution effect of a wage decrease in the work-leisure model results in the worker choosing to
a. work less than before. b. work more than before. c. possibly work more or less than before. d. work more with a higher level of consumption.
Harmful carbon emissions
A) are increasingly produced by industrializing countries such as China and India. B) are only a problem in high-income countries. C) must be reduced by countries individually. D) have little effect on the environment.