The nice thing about a pollution tax is that it
a. eliminates pollution
b. forces cleanup to occur
c. is imposed only on the market with the externality
d. creates new property rights
e. creates positive externalities to compenstate for negative externalities
C
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If the expansion of output in an industry leads to unchanged resource prices, the industry is most likely to be a(n):
a. decreasing cost industry. b. increasing cost industry. c. constant cost industry. d. industry characterized by economies of scale.
?In the simplest Keynesian expenditure model, which of the following is fixed to allow for easy evaluation of changes in demand due to real income?
a. the price level
b. interest rates
c. tastes and preferences
d. future expectations
Economic growth will occur and the price level will be constant when the increase in aggregate demand
What will be an ideal response?
The idea that money has "time value" refers to the fact that:
A. people prefer to receive a given sum of money in the future rather than in the present. B. money can be used to purchase the services of labor, as measured in hourly units. C. a specific amount of money is more valuable to a person the sooner it is received. D. compound interest converts future dollars into a greater amount of current dollars.