A government subsidy is typically used
A) to correct a negative externality.
B) to provide a government-inhibited good.
C) to reduce inflation.
D) to correct a positive externality.
Answer: D
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Which statement is true?
A. it is easier to attain full employment than full production. B. employment discrimination no longer exists in the U.S. labor market. C. The United States is usually operating on the production possibilities frontier. D. None of these statements are true.
Labor demand is considered a derived demand because producers do not demand labor for itself but only because labor is used to produce output that consumers desire
Indicate whether the statement is true or false
A central cause of the rising debt-GDP ratio in the United States during the 1980s and 1990s was
A) the tax cuts of the early 1980s. B) continuous increases in the military portion of the federal budget. C) overly-generous indexation of Social Security benefits. D) deficit-reduction targets.
To efficiently improve environmental quality, it is usually
A. better to focus on the hardest areas to clean up first since these usually are the biggest problems. B. more appropriate to concentrate on the physical quantities of pollution rather than on economic costs. C. better to focus on economic damages rather than physical quantities of pollution. D. best to set up stringent emission standards that must be followed by everyone.