The use of chlorofluorocarbons in refrigerators and air conditioners is alleged to cause the destruction of the ozone layer that surrounds the earth. This layer protects humans from ultraviolet radiation, which causes skin cancer. Industry has been prohibited from using these substances in aerosol cans, but the government has been reluctant to ban their use altogether because of the serious
economic consequences. Economists analyze such problems and refer to them as
a. issues of unfairness.
b. examples of excess abstraction.
c. externalities.
d. comparative advantage issues.
e. examples of trade-offs between output and equality.
c
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When a movement up along the aggregate supply curve occurs, there is also
A) no movement along nor a shift in the short-run Phillips curve. B) a rightward shift of the short-run Phillips curve. C) a movement up along the short-run Phillips curve. D) a movement down along the short-run Phillips curve. E) a leftward shift of the short-run Phillips curve.
Because there are numerous choices for fast food purchases, the price elasticity of demand for Taco Bell food is likely
A) inelastic. B) unitary elastic. C) perfectly inelastic. D) elastic.
Which of the following statements is true about the misperceptions theory?
A) Both anticipated and unanticipated changes in the nominal money supply have real effects on the economy. B) Neither anticipated nor unanticipated changes in the nominal money supply has real effects on the economy. C) Unanticipated changes in the nominal money supply have real effects, but anticipated changes are neutral. D) Anticipated changes in the nominal money supply have real effects, but unanticipated changes are neutral.
Government deficit financing is made easier by a rise in inflation when inflation ________ the private sector's demand for high-powered money, which the government can ________
A) lowers, create and spend B) lowers, obtain through taxation C) raises, create and spend D) raises, obtain through taxation