Refer to Exhibit 2-1. A movement from point B to point D
 ANSWER 3.png)
could only happen through economic growth.
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The government has decided to give every person in the U.S. a $5 coupon that they can use at the grocery store to purchase their choice of cheese. We would expect this policy to lead to
A) an increase in aggregate demand but not equivalent to the full impact of all of the coupons redeemed due to some direct expenditure offset. B) no increase in aggregate demand because there would be no direct expenditure offset. C) an increase in aggregate demand equivalent to the full impact of all of the coupons redeemable. D) no increase in aggregate demand due to the Ricardian equivalence theorem.
In considering how to allocate its scarce resources among its various members, a household considers
a. each member's abilities. b. each member's efforts. c. each member's desires. d. All of the above are correct.
A corrective tax
a. allocates pollution to those factories that face the highest cost of reducing it. b. is a form of regulation. c. works well for all types of externalities. d. is inferior to regulatory policy according to most economists.
Requiring that a firm engage in pollution abatement will likely do all of the following except
A. Shift the firm's ATC curve downward. B. Reduce profits for the firm. C. Reduce the amount of output the firm produces. D. Shift the firm's MC curve upward.