To correct for negative externalities, the government
A) should allow the price system do the correction.
B) can impose a tax.
C) can provide a subsidy to consumers.
D) should create a public good.
B
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The tragedy of the commons is the tendency of a society to overuse and deplete open-access resources
Indicate whether the statement is true or false
From the economist's point of view, dividends paid to stockholders are part of a corporation's costs
A) because taxes are paid on a corporation's profits prior to the payment of dividends. B) because they must be included in stockholders' incomes for purposes of personal income taxation. C) insofar as they are contractual obligations. D) insofar as they represent what funds invested in the corporation could have earned elsewhere.
The summary of the flows of goods, services, assets, and currency in and out of a country in a particular year is the ________________________.
Fill in the blank(s) with the appropriate word(s).
Unemployment rates for skilled workers compared to unemployment rates for unskilled workers are:
A. Lower, because skilled workers tend to be employed in less cyclically vulnerable industries, such as the services and nondurable goods industries B. Higher, because skilled workers tend to be employed in more cyclically vulnerable industries, such as the durable goods industry C. Higher, because businesses are less likely to retain the more costly skilled workers no matter what type of industry D. Lower, because skilled workers tend to be primarily employed by government at the local, state, and Federal levels