Externalities measure
A. Only costs of a market activity borne by a third party.
B. Either costs or benefits of a market activity borne by a third party.
C. Only benefits of a market activity borne by a third party.
D. None of the choices are correct.
Answer: B
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Command-and-control legislation, as compared to incentive-based regulation:
A. encourages the use of comparative advantage in the short run, and the development of new technology in the long run. B. encourages the use of comparative advantage in the short run, but discourages the development of new technology in the long run. C. discourages the use of comparative advantage in the short run, but encourages the development of new technology in the long run. D. discourages the use of comparative advantage in the short run, and discourages the development of new technology in the long run.
Recall the Application about rising oil prices and their effect on the U.S. economy to answer the following question(s).According to the Application, the U.S. imports about ________ of the petroleum products it consumes.
A. 25% B. 50% C. 75% D. 38%
In a market for emission permits, firms that emit below their allowed limits
A. will sell their excess allowances through a trading system. B. are taxed by the government for the amount of emissions. C. will buy even more allowances through a trading system. D. receive a subsidy for the amount of emissions.
Refer to the information provided in Table 24.3 below to answer the question(s) that follow.
Table 24.3
Refer to Table 24.3 At an output level of $2,400 billion, there is a tendency for output
A. to increase. B. to remain constant. C. to fall. D. to either increase or decrease.