Pigovian taxes are used to counterbalance:
A. negative externalities.
B. network externalities.
C. positive externalities.
D. They could be used to counteract any of these.
Answer: A
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Inflation targeting refers to conducting ________ policy so as to commit the central bank to achieving a ________
A) monetary; publicly announced level of inflation B) fiscal; publicly announced level of inflation C) fiscal; zero inflation rate D) monetary; zero inflation rate
Refer to Table 17-4. What are the quantity of labor and marginal revenue product of labor that will maximize the profit Apple would earn from selling iPods?
A) 2; $680 B) 2; $160 C) 3; $140 D) 3; $340
The Samuelson-Solow version of the Phillips curve states that
A) there is an inverse relationship between the wage inflation rateand unemployment B) there is a direct relationship between the wage inflation rateand unemployment. C) there is an inverse relationship between price inflation andunemployment. D) there is a direct relationship between price inflation and unemployment. E) a and b
If labor and capital are substitute resources in production, an increase in the price of capital will
A. increase the wage rate and decrease the number of workers hired. B. decrease the wage rate and increase the number of workers hired. C. decrease the wage rate and decrease the number of workers hired. D. increase the wage rate and increase the number of workers hired.