The government can internalize externalities by taxing goods that have negative externalities and subsidizing goods that have positive externalities
a. True
b. False
Indicate whether the statement is true or false
True
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Cyclical unemployment occurs
A) with economic fluctuations; it increases during bad times and decreases during good times. B) because of a mismatch between the jobs that are available in the economy and the skills of workers seeking jobs. C) because the government labels some people who aren't really in the labor force as unemployed. D) naturally during the normal workings of an economy, as people change jobs, move across the country, etc.
One of the major reasons why the United States exports jet airplanes is because Boeing faces ________ opportunity cost than firms in other nations in the production of such aircraft
A) an unrelated B) a lower C) a higher D) an identical E) a nonexistent
The costs of determining who to bargain with are called
A) search costs. B) collectivization costs. C) negotiation costs. D) monitoring and enforcement costs.
According to the text, a government policy of promoting competition must
A) assure small businesses they won't fail because of below-cost pricing or other predatory practices by larger businesses. B) assure small businesses they won't fail under any circumstances. C) equate profit margins among competing suppliers. D) maintain a process rather than some state of affairs. E) work toward making sellers' demand curves completely elastic.