All of the following are choices for the polluter when faced with additional costs to abate the externality EXCEPT
A) ignore the government regulations.
B) install pollution abatement equipment.
C) reduce the pollution-causing activity.
D) pay the price to pollute.
Ans: A) ignore the government regulations.
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Consider the two graphs above. Suppose there is an increase in the real interest rate. This would ________ the desired level of the capital stock, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
In order to have adequate water access, based on the World Bank definition, there should be
A. A public lake or stream within a mile of everyone's home. B. Indoor plumbing in at least one-quarter of the homes in a country. C. A private water pipe outside everyone's home. D. A protected public water pipe within half a mile of everyone's home.
Use the indifference curves and the budget lines in Figure 19.3 to answer the indicated question. Assume the price of Y is $1 per unit. If the price per unit of good X is $3, the consumer would maximize utility at point
A. A. B. B. C. C. D. D.
The economy pictured in the figure has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; A B. recessionary; C C. recessionary; B D. expansionary; A