Externalities may be internalized by
A. government-imposed taxes and subsidies.
B. regulation.
C. legal rules and procedures.
D. All of the choices are correct.
D. All of the choices are correct.
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During an economic downturn, increased spending on infrastructure repairs is:
A. more costly because the resources needed to complete those projects aren't available. B. a bad idea because there's no need for better infrastructure during an economic downturn. C. less costly because the resources needed to complete those projects would otherwise sit idle. D. a good idea because it will slow the pace of economic recovery.
Which of the following policies would be most likely to reduce the efficiency of a country's economic organization?
a. a legal structure that establishes secure property rights b. imposition of tariffs and other barriers limiting international trade c. competitive markets d. a stable monetary system
Why do Federal Reserve Board of Governors have long (14 year) terms?
If the economy experiences a recessionary gap then:
A. aggregate expenditures exceed the level of spending necessary to provide for full employment. B. Keynesian economics would recommend a reduction in government spending or an increase in taxes. C. Keynesian economics would recommend an increase in government spending or a decrease in taxes. D. the equilibrium level of output and income is above full employment.