The most common way that the government deals with negative externalities is
a. ignoring them
b. taxing the goods that cause the negative externalities
c. controlling the quantity produced of the good that causes the negative externalities
d. privatizing them
e. to make its production illegal
C
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High inflation makes money ________ because ________
A) function better as a store of value; it leads to a more accurate allocation of resources B) function less well as a store of value; the money loses value and therefore has less purchasing power C) function better as a store of value; the money gains value and therefore has greater purchasing power D) function better as a unit of account; money never loses value but it does gain purchasing power in some regions E) function less well as a store of value; it decreases the price level and increases the buying power of money
What are the main sources of health insurance in the United States?
What will be an ideal response?
The demand for a movie ticket is probably _________________ than is the demand for a Broadway show ticket because ______________.
A. less price elastic; a movie ticket requires a smaller portion of one's income. B. more price elastic; a movie ticket requires a smaller portion of one's income. C. less price elastic; a movie ticket has fewer available substitutes. D. more price elastic; a movie ticket has fewer available substitutes.
Which of the following actions of the Fed will increase money supply in the U.S. directly?
a. Purchase U.S. government bonds b. Increase the federal funds rate c. Increase the reserve requirement d. Increase the discount rate e. Ban sales of private mutual funds