Which of the following statements is correct?
a. Corrective taxes are often preferred over direct regulation because they typically reduce externalities at a lower cost.
b. Corrective taxes distort economic incentives.
c. Corrective taxes are often preferred over direct regulation because they typically reduce externalities at a faster rate.
d. Both a and b are correct.
a
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Token, or fiat, money is defined as:
(a) A unit of account; (b) Money that has intrinsic value; (c) Money that has no intrinsic value; (d) None of the above.
Suppose that Tom bought a bike from Helen for $195. If Helen's reservation price was $185, and Tom's reservation price was $215, the seller's surplus from this transaction was:
A. $10 B. $215 C. $195 D. $20
In which year was the poverty rate the lowest?
A. 1960 B. 1973 C. 1984 D. 1993
The following is NOT an example of a potential monitoring solution to moral hazard
a. blocking social network sites on company computers
b. rejecting a job candidate that fails to show up at the allotted interview time
c. GPS tracking devices in repair trucks
d. listening in on call center conversations