If market signals result in pollution beyond the optimal level, then
A. The economy experiences government failure.
B. The government is allocating resources inefficiently.
C. A laissez faire approach will reduce the level of pollution.
D. The market mechanism has failed to achieve efficiency.
Answer: D
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If individuals become so discouraged that they stop seeking jobs, then the:
a. Unemployment rate rises and the employment rate falls. b. Unemployment rate falls and employment rate stays the same. c. Unemployment rate falls and the employment rate falls. d. Unemployment rate remains the same and the employment rate stays the same. e. Unemployment rate falls, and the employment rate rises.
In perfectly inelastic supply, the quantity doesn't change which means . . . No deadweight loss and no underproduction
What will be an ideal response?
Figure 14-4
In , an unanticipated shift to a more restrictive monetary policy will shift
a.
AD to the right and temporarily increase real GDP.
b.
AD to the left and temporarily reduce real GDP.
c.
AD to the right and SRAS to the left and lead to higher prices (inflation).
d.
both AD and SRAS to the right and lead to an increase in real GDP.
What occurred during the Free Banking Era?
a. Currency varied widely from state to state. b. Repaying of loans was not closely monitored. c. The Second Bank of the United States was established. d. The dollar bill was introduced.