Which of the following is a market-based approach to controlling pollution?
A. Government sales of tradable allowances to emit sulfur dioxide up to a certain maximum
B. A law requiring auto manufacturers to install catalytic converters to reduce carbon monoxide emissions below a certain level
C. A regulation banning the use of lead-based solder in household plumbing
D. A rule requiring municipalities to limit the amount of atrazine in their water supplies to one part per billion
Answer: A
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Data on productivity gains in the 1990s in the United States strongly suggest that a significant share of those gains was attributable to:
A) improvements in education and training. B) improvements in information technology. C) substantial reductions in labor costs. D) increased demand for goods and services.
A dominant strategy is one that
A) yields a position of the winner so long as the other participants act as planned. B) every participant in the game will follow. C) turns a negative-sum game into a positive-sum game. D) always yields the highest benefit regardless of what the other players do.
Why do firms spend money on costly innovation?
A. Competitive markets leave firms no choice but to innovate. B. Innovation is a low-risk activity. C. Innovation always results in higher profits for firms. D. Innovation is usually profitable because the majority of innovations reach the market place. E. Because innovation is beneficial for society and firms are motivated to act in ways that are beneficial for society.
Suppose an increase in government spending stimulates real GDP without affecting the price level. What is the relevant range of the aggregate supply curve in this case?
A. the classical range B. the intermediate range C. the Keynesian range D. the monetarist range