Decades of research around the world suggest a link in the _____
Fill in the blank(s) with the appropriate word(s).
long run between sharp increases in the money supply and higher inflation.
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Refer to Figure 15-16. If the regulators of the natural monopoly allow the owners of the firm to break even on their investment the firm will produce an output of ________ and charge a price of ________
A) Q3 units; P4 B) Q1 units; P1 C) Q1 units; P4 D) Q5 units; P3
If a foreign supplier sells a good in another country at a cheaper price than it sells the good in its home market, the
a. foreign supplier will gain a monopoly in the foreign market. b. consumers in the receiving country will be harmed by the dumping of the good into its domestic market. c. consumers in the receiving country can gain from buying the foreign-produced good if it is cheaper than the cost of producing the good domestically. d. usual implications of the law of comparative advantage with trade restrictions do not hold in this case, particularly if the low-cost supplier is subsidized by a foreign government.
The essential cause of the tragedy of the commons is the fact that:
A. when a resource has no price, it leads to a positional externality. B. governments may not tax activities that generate negative externalities. C. it can be difficult to solve the free-rider problem. D. one person's use of a commonly held resource imposes an external cost on others.
If a pollution tax imposed on a firm is smaller than the external cost:
A. the externality is completely internalized. B. the social production cost increases by the amount of the pollution tax. C. the pollution tax transfers the full cost borne by people outside the firm back to the firm itself. D. from society's viewpoint, the firm is producing too much.