Which of the following responses to a positive externality enhances society's welfare?
a. taxes
b. subsidies
c. effluent fees
d. quotas
e. a cut in funding
B
You might also like to view...
How does the "rule of law" increase wealth for a country?
A. It is up to society to make decisions and they can choose whatever rules they want. B. Rule of law takes away incentives for the business. C. Known and predictable laws make governing a business less risky. D. It guarantees business owners profit which improves the country's standard of living.
Banks are exposed to interest rate risk primarily because
A) interest rates are very difficult to forecast. B) the maturities of banks' assets and liabilities differ. C) borrowers from banks are prone to default. D) depositors are always searching for a slightly higher interest rate.
Suppose that in a computer factory, if there is 1 worker, 80 computers are produced per week. If there are 2 workers, 150 computers are produced per week. If there are 3 workers, 210 computers are produced per week
Given this information and the fact that the firm receives $200 per computer, the marginal revenue product of the third worker is A) $4,200. B) $12,000. C) $10,000. D) $14,000.
Other than its main role of controlling the supply of money, the functions of the Federal Reserve include