To correct for negative externalities, the government
A. can impose a tax.
B. can provide a subsidy to consumers.
C. should create a public good.
D. should allow the price system do the correction.
Answer: A
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A decrease in equilibrium price and an increase in equilibrium quantity could be brought about by a(n)
a. increase in demand b. decrease in demand c. increase in resource prices d. improvement in production technology e. favorable shift in tastes and preferences
Suppose that a technological advancement substantially reduces the cost of laser eye surgery. This would cause the equilibrium:
A. price of technology to increase. B. quantity of technology to decrease. C. quantity of laser eye surgery to increase. D. quantity of laser eye surgery to decrease.
Karen O'Brien has the demand schedule for grapefruit shown in the table below.
A) Her total utility for four grapefruit would be _____.
B) Her marginal utility from the fifth grapefruit would be _____.
C) If the price were 40 cents, her consumer surplus would be _____.
What type of international economic linkage would be illustrated by the purchase of European stocks and bonds by a U.S. money manager?
A. Trade flow B. Resource flow C. Financial flow D. Information flow