To increase society's total welfare (social efficiency), a production process that produces a negative externality should be:
A. taxed.
B. provided by the government.
C. ignored.
D. subsidized.
Answer: A
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According to the "rational expectations" school of thought in macroeconomics, the short-run Phillips curve is ________ in face of anticipated changes in monetary policy
A) horizontal B) vertical C) negatively sloped D) positively sloped
In the new Keynesian model, if an aggregate demand increase is anticipated, then ________
A) aggregate demand will not change B) short-run aggregate supply will shift up immediately C) short-run aggregate supply will shift down immediately D) there is no immediate effect on the short-run supply curve
_________________ —a term describing a good in which the quantity demanded rises as income rises, and in which quantity demanded falls as income falls.
a. Complement good b. Inferior good c. Normal good d. Superior good
In 2013, the U.S. federal government spent approximately ___________ trillion
A) $4.9 B) $7.3 C) $3.7 D) $2.1