Which of the following statements is true?
a. Emissions-trading is trading that allows firms to buy and sell the right to pollute.
b. The Coase Theorem is the proposition that private markets can rarely ever achieve social efficiency.
c. The free-rider problem refers to those who ride on public transit systems without paying.
d. Government failure has never occurred in the United States.
a
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Karl Marx published:
a. Das Kapital. b. General Theory of Communism. c. The Wealth of Nations. d. Capitalist Manifesto.
The Earned Income Tax Credit
a. is targeted to poor families b. is less targeted to poor families than the minimum wage c. is just a different name for the minimum wage d. operates on the labor market in exactly the same as the minimum wage
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.
When graphing the consumption function, what purpose is served by the 45-degree line?
A. It identifies all the points where real dissaving and saving are equal. B. It identifies all the points at which real disposable income and planned real consumption spending are equal. C. It identifies all the points at which saving and consumption spending are equal. D. It identifies all the points at which real planned investment expenditure and real autonomous consumption spending are equal.