Contractionary fiscal policies used to reduce the deficit in the 1990s did not hurt the economy because fiscal and monetary policies were well coordinated at that time
a. True
b. False
Indicate whether the statement is true or false
True
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If the production of a good causes pollution (an external cost) is the unregulated competitive market equilibrium of that product efficient?
What will be an ideal response?
Which of the following statements is false?
A. In the case of a negative externality, the market equilibrium is inefficient. B. In the case of a negative externality, when a tax is set equal to the marginal external costs (MEC) efficiency can be achieved. C. In the case of a negative externality, when a tax is set that is greater than the marginal external costs (MEC) inefficiency will result. D. In the case of a positive externality, when a tax is set equal to the marginal external benefits (MEB) efficiency can be achieved.
The slope of the utility possibilities frontier is
A) positive. B) negative. C) zero. D) undefined.
Suppose that a disease that affects people who consume beef has been discovered in the United States. One likely result is:
A. a decrease in demand for beef. B. an increase in buyers' reservation prices for beef. C. a decrease in demand for chicken. D. a decrease in the quantity demanded of beef.