Beginning from a situation where there were no clear property rights to clean air and water:
a. subsidies could not improve efficiency in cases of external benefits
b. subsidies could not improve efficiency in cases of external costs.
c. taxes could not improve efficiency in cases of external costs.
d. neither external benefits nor external costs could improve efficiency in either the case of external benefits or the case of external costs.
b
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When people who are holding the money of some other country want to exchange it for U.S. dollars, they ________ U.S. dollars and ________ that other country's money
A) demand; supply B) supply; supply C) supply; demand D) demand; demand
The riskiness of an asset's returns due to changes in interest rates is
A) exchange-rate risk. B) price risk. C) asset risk. D) interest-rate risk.
A vertical aggregate supply curve implies __________ Phillips curve
A) an upward-sloping B) a downward-sloping C) a vertical D) a horizontal
Given the production function q = 1.37LK, what is the marginal product of labor?
A) 1.37 B) 0 C) 1.37K D) Cannot be determined with the information given.