Economists tend to distrust voluntary approaches as a way to deal with externalities. What is their most common concern?
A. Voluntary approaches usually require people to ignore their self-interest, and economists do not think people do that well.
B. Voluntary approaches are often too effective and lead to excessive reduction in the externality.
C. Voluntary approaches often are perceived as unfair, imposing a heavy burden on the poor.
D. Voluntary approaches do not make people develop an awareness of the problem that would lead them to make good lifestyle changes.
Answer: A
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Holding other things constant, a depreciation of the US Dollar to the Kenyan Shilling might cause the demand for Shilling to _____________ and the supply for Shilling to __________
a. Increase; decrease b. Increase, increase c. Decrease; Increase d. Decrease; Decrease
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a. True b. False Indicate whether the statement is true or false
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