If the tax on gasoline is increased to provide incentives to curb air pollution, then the tax serves as
A. An emission charge.
B. A pollution fine.
C. A user fee.
D. A command-and-control standard.
Answer: C
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If the U.S. current account balance is negative,
A) its financial account is likely to be positive. B) its financial account is likely to be negative C) it must use official settlements to balance its payments. D) its balance of payments cannot be zero
Which of the following generates a supply of U.S. dollars?
A. The demand for U.S. exports to foreign countries. B. The construction of a plant abroad by a U.S. corporation. C. Chinese buyers of American aircraft. D. Foreign tourists visiting the United States.
The total utility of water is
A) lower than the total and marginal utility of diamonds. B) lower than the total utility of diamonds, but the marginal utility is higher. C) higher than the total utility of diamonds, but the marginal utility of diamonds is higher. D) the same as the total utility of diamonds, but the marginal utilities are the same.
Contractionary monetary policy is achieved by:
A) decreasing the amount of bank reserves and lowering the federal funds rate. B) decreasing the amount of bank reserves and raising the federal funds rate. C) increasing the amount of bank reserves and lowering the federal funds rate. D) increasing the amount of bank reserves and raising the federal funds rate.