Figure 4-14
Frustrated by the cost and ineffectiveness of the war on drugs, the U.S. government could consider "decriminalization" of the use and sale of cocaine. Critics contend that lower prices will expand drug use and that decriminalization will remove the stigma and danger from arrest associated with drug use, thus further increasing the demand and number of addicts. Which graph in Figure 4-14 best illustrates the critics' case?
a.
1
b.
2
c.
3
d.
4
a
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Answer the following statement(s) true (T) or false (F)
1. Proponents of an environmentally adjusted measure of national income believe that environmental pollution linked to production should be recorded as a loss in the system of national accounts (SNA). 2. Improvements made to China’s environment in preparation for the Olympic Games in 2008 have been maintained and even enhanced over time. 3. The economic criteria concerned with minimizing resource use to achieve an objective is known as allocative efficiency. 4. Setting an air quality standard is an example of a command and control approach to improving the environment. 5. A tax imposed on emissions is an example of the market approach to pollution control.
Patents create monopolies by restricting
A) demand. B) prices. C) entry. D) profit.
Reciprocity means:
A. responding to another's actions with a similar action. B. deriving utility from an action that will cause another's utility to increase. C. doing good things for people and asking nothing in return. D. deriving utility from the action of a stranger.
Even if the Fed attempts to control an asset bubble by raising interest rates to any reasonable degree, it is not clear that overly-optimistic investors would respond
a. True b. False