Which of the following problems can not be alleviated by a gasoline tax?
a. traffic congestion
b. traffic accidents
c. the undersupply of goods that produce positive externalities
d. air pollution
c
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If the economy receives an influx of new workers from immigration,
A) we will move down along the long-run aggregate supply curve. B) we will move up along the long-run aggregate supply curve. C) the long-run aggregate supply curve will shift to the right. D) the long-run aggregate supply curve will shift to the left.
In the ISLM framework, monetary policy has the greatest impact on equilibrium income when
A) money demand = money supply. B) money demand is infinitely elastic. C) the interest rate is low. D) the investment function is highly interest-sensitive.
In the prisoners' dilemma,
a. the prisoners easily collude in order to achieve the best possible payoff for both. b. only one player has a dominant strategy. c. when each player chooses his dominant strategy the players achieve the best joint outcome. d. when each player chooses his dominant strategy the players reach a Nash equilibrium.
If a subsidy (going to producers) is created for a good, this would
A. move its supply curve to the right. B. cause a movement along the supply curve to a (lower price, lower quantity) point. C. cause a movement along the supply curve to a (higher price, higher quantity) point. D. move its supply curve to the left.