If some activity creates external benefits as well as private benefits, then economic theory suggests that the activity ought to be:
A. Taxed
B. Prohibited
C. Subsidized
D. Left alone
C. Subsidized
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Since few Americans would ever be willing to pay more for a sandwich than for a pair of jeans,
A) for most Americans clothing is more important than food. B) for most Americans clothing is more valuable than food. C) for most Americans clothing has more monetary value than food. D) most Americans derive their values from the culture rather than biological necessities. E) most Americans have little difficulty obtaining enough to eat.
The reduction in the U.S. government deficit in the early 1990s was the result of strong economic growth
a. True b. False Indicate whether the statement is true or false
Depletable resource prices change over time depending on
A. how the technology of resource extraction changes. B. the prices of publicly traded stock. C. the number of countries that have nationalized production. D. the prices of substitutable renewable resources.
As shown by the IS-LM model, there are two reasons that the Fed can lose control of the economy. One of these reasons is
A) federal funds rate can never reach zero percent. B) zero federal funds rate is not sustainable. C) household and business borrowers do not base their decision to borrow on interest rates. D) that the zero federal funds rate achieved by the Fed is irrelevant to household and business borrowers.