If the objective of economic policy is to decrease the amount of pollution by an industry in the long run, the
a. most effective policy action would be a subsidy to firms for the reduction of emissions.
b. most effective policy action would be a tax on polluting firms.
c. appropriate course of action for government is to do nothing.
d. appropriate course of action for government is to increase R&D outlays to develop technology to remove the emissions from the environment.
b
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A monopolistic competitor incurs losses if ________
A) price is higher than average total cost B) price is lower than marginal cost C) price is equal to marginal cost D) price is lower than average total cost
If the price of steel increases drastically, the quantity of steel demanded by the building industry will fall significantly over the long run because
A) buyers of steel are less sensitive to a price change if they have more time to adjust to the price change. B) profits will fall by a greater amount in the long run than in the short run. C) buyers of steel are more sensitive to a price change if they have more time to adjust to the price change. D) sales revenue in the building industry will fall sharply.
What are remittances and what role do they in developing countries? How could this potentially benefit an economy?
What will be an ideal response?
Assume the output market adjusts more rapidly than the asset market. A point of disequilibrium that is below both AA and DD will therefore initially result in
A) an increase in output. B) a decrease in output. C) a contraction of the money supply. D) a depreciation of the home currency. E) an appreciation of the home currency.