How could you classify the motives of a wealthy widow donating money to an orphanage or a teenager picking up trash in his neighborhood?
a. self-regulation
b. government regulation
c. taxation
d. subsidization
a. self-regulation
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In an open economy, why is the demand curve for dollars in the foreign-currency exchange market downward sloping?
A. A depreciation in the domestic currency causes exports to fall and imports to rise and, therefore, net exports to fall. B. A depreciation of the dollar reduces the quantity of dollars demanded in the market for foreign-currency exchange. C. When the value of the domestic currency depreciates, domestic goods become less expensive relative to foreign goods, making domestic goods more attractive to domestic and foreign consumers. D. Net capital outflow equals net exports.
An increase in a country's capital stock relative to its work force is known as
A) capital improvement. B) capital augmentation. C) capital growth. D) capital deepening.
In the money market, if the money supply decreases, the opportunity cost of holding money _____
Fill in the blank(s) with the appropriate word(s).
If a firm is taxed for each unit of waste it produces, the firm will decrease the amount of waste produced until:
A. there is no waste produced. B. the marginal cost from decreasing waste is zero. C. the marginal cost of decreasing waste is equal to the marginal benefit from decreasing waste. D. the marginal benefit from decreasing waste is equal to zero.