Which of the following activities will generate a negative externality?
a. A beekeeper keeping bees for honey
b. Inoculations for communicable diseases
c. Research and development activities of a firm
d. A chemical factory set up in a residential area
e. Improvement in education facilities
d
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In empirical analyses of factors that help explain wages,
a. effort and ability are not likely to contribute to large differences in wages in the U.S. economy. b. economists typically find that measurable factors explain less than half of the variation in wages. c. economists typically find few factors that are not explicitly measurable. d. unmeasurable influences on wage differences are found to be quite small.
The Federal Open Market Committee
a. must submit its policies to the President and Senate for approval. b. operates with almost complete discretion over monetary policy. c. is required to target short-term interest rates in a mechanical way based on an equation that takes into account both price stability and output fluctuations. d. is required to set and publicize targets for money supply growth.
Which one of the following statements is false?
a. Technological progress will lower the price of transferable pollution permits b. Under a pollution tax, technological progress will reduce overall pollution levels c. Under a system of transferable permits, technological progress will reduce overall pollution levels d. A pollution tax creates an incentive for technological progress e. Under a system of transferable permits, technological progress can result in some firms increasing their pollution levels
Available market incentives for clean fuel vehicles
a. include carbon allowances for purchasers of hybrid vehicles b. no longer exist in the United States c. are tax credits for purchasers of plug-in hybrids d are limited to international buyers of electric cars