One way that the government encourages the production of a good with positive externalities is to offer
A. an effluent fee.
B. a subsidy.
C. a market to pollute.
D. a pollution tax.
Answer: B
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The most important thing about higher labor productivity is that it means
A) we can compete well with other nations. B) we are doing better than anyone else is. C) we can achieve a happier population. D) we can have a higher standard of living.
Consumers expect that the price of a gallon of gasoline will rise next week. As a result
A) today's supply of gasoline increases. B) today's demand for gasoline increases. C) the price of a gallon of gasoline falls today. D) next week's supply of gasoline decreases.
Since the end of World War II, corporate income taxes have accounted for
A. an increasing share of federal revenue. B. a steady share of federal revenue. C. a declining share of federal revenue. D. a rising share of revenue until 1980, and then a falling share.
Refer to the graph shown. The output range in region a is associated with:
A. constant returns to scale. B. diseconomies of scale. C. economies of scale. D. increasing marginal productivity.