The effect of a government subsidy in a market where a positive externality is present is:
A. to increase surplus.
B. to increase efficiency.
C. to make consumers internalize the external benefit.
D. All of these statements are true.
D. All of these statements are true.
You might also like to view...
The short run Phillips Curve shows there is ________ relationship between the unemployment rate and the rate of inflation.
A. a positive B. a constant C. a negative D. no
Some superstar athletes in the sports industry earn very high levels of income relative to other occupations, and over time the wage differential has been increasing. What could have caused this?
A) The market power of athletes' unions has increased. B) Technological advances such as cable television has increased the demand for sports entertainment. C) The supply of star athletes has decreased. D) The supply of star athletes has increased due to college athletic programs.
The actions that the Federal Reserve takes to manage the money supply and interest rates to pursue macroeconomic policy objectives refer to
A) fiscal policy. B) monetary policy. C) quantitative analysis. D) Federal Reserve transparency.
John is an Asian 23-year-old male, and Ken is an Asian 43-year-old male. Both John and Ken are economics majors, and they graduated from the same college with the same GPA — John in 2006 and Ken in 1986 . John and Ken are both financial advisers at the same brokerage firm. John earns $52,000 a year, and Ken earns $88,000 a year. Select the best explanation for this wage difference
a. John has more human capital than Ken. b. John has less human capital than Ken. c. John has been discriminated against because he is young. d. Ken has been discriminated against because he is old.