A Pigouvian subsidy
A. cannot exist with externalities.
B. is the same thing as a Pigouvian tax.
C. is measured in terms of Pigouvian dollars.
D. moves production to the socially optimal level of output.
D. moves production to the socially optimal level of output.
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When net exports increase,
A. the expenditures schedule increases. B. the expenditures schedule decreases. C. there is a corresponding increase along the aggregate demand curve. D. there is a corresponding decrease along the aggregate demand curve.
The mayor of Smallville allows all citizens to access his private swimming pool in summer. By doing so, he converts a _____ into a _____
a. private good; public good b. public good; merit good c. private good; club good d. club good; private good
Which of the following describes how import quotas on sugar generally affect consumer surplus as shown in Exhibit 2?
a. eliminated
b. unchanged
c. decreased
d. increased
Which of the following schools of economic thought would advocate increasing the rate of growth of the money supply during a recession and decreasing the rate of growth of the money supply during inflations?
A. The classical school B. Keynesians C. Monetarists D. Supply-side economists