A government regulation that bans the use of a certain polluting technology in the production of a good is an example of a ________ to solve an externality
A) social enforcement mechanism
B) command and control approach
C) market-based approach
D) Coasian approach
B
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If the real interest rate is equal to the nominal interest rate in an economy:
A) inflation must be negative in the economy. B) inflation must be zero in the economy. C) inflation must be positive in the economy. D) the nominal interest rate must be zero.
A key assumption made when a supply schedule is constructed is that
A. the only factors that matter in determining supply are price and quantity. B. firms only want to sell a certain amount of a product. C. supply is too important to be left to the marketplace. D. only price and quantity vary, all other determinants of supply are held constant. E. demand has a positive slope.
The income elasticity of demand for foreign travel
A) is likely to be smaller than the income elasticity of demand for food. B) is likely to be larger than the income elasticity of demand for food. C) cannot be compared to the income elasticity of demand for food. D) is likely to be inelastic. E) is likely to be negative.
Explain how a reduction in the unemployment rate will affect bargaining power and nominal wages
What will be an ideal response?