If the government were to impose a fine of $4,000 for each unit of air-pollution released by a fertilizer plant, the policy would be considered
a. a subsidy.
b. a regulation.
c. a corrective tax.
d. an application of the Coase theorem.
c
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The marginal product of capital is always ________ and it ________ as the capital stock increases
A) positive; increases B) positive; decreases C) negative; increases D) negative; decreases
The backward-bending supply curve for labor occurs because _____
a. as wages increase, individuals pay higher taxes b. as wages increase, individuals consume more leisure c. as wages increases the number of hours worked increase d. as wages increase, employers cannot afford as many hours
How is inflation typically measured? What are the different types of inflation? Why is it important to know which type of inflation we may be experiencing?
The short run sequence of events following an unanticipated shift to a more restrictive monetary policy would be
a. lower interest rates, decrease in aggregate demand, and a reduction in output. b. lower interest rates, increase in aggregate demand, and an expansion in output. c. higher interest rates, decrease in aggregate demand, and a reduction in output. d. higher interest rates, increase in aggregate demand, and an expansion in output.