A tax on polluting firms
a. would shift the LRAC curve upward.
b. would shift the LRAC curve downward.
c. would have the same impact on the firm as a subsidy.
d. tends to have the perverse effect of increasing pollution.
a
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The quantity theory of money implies that over the long run, the inflation rate will ________
A) equal the nominal interest rate B) equal the growth rate of M2 minus the growth rate of real output C) equal the growth rate of M2 plus the growth rate of real output D) equal the velocity of money
Which of the following collective consumption goods does not become a private consumption good at some level of use?
a. highway b. swimming pool c. national defense d. television
If the minimum efficient scale in the production of rubber exceeds the quantity of rubber any individual tire producer buys,
a. tire producers should integrate backward into rubber production b. there will be a monopoly in rubber production c. tire producers should not integrate backward into rubber production d. tire producers will be charged prices above what the cost of producing rubber themselves would be e. tire companies will switch to fiberglass
Which of the following best describes the impact of technological change on labor? a. Technology causes unemployment in the short run and lower incomes in the long run
b. Technology causes unemployment in the short run and higher incomes in the long run. c. Technology causes unemployment in the long run and higher incomes in the short run. d. Technology causes unemployment in the long run and lower incomes in the short run. e. Technology causes unemployment and lower incomes in both the long run and the short run.