In order to bring a market to its efficient outcome when a negative externality is present, the government could:
A. tax the parties involved in the market the value of the external cost.
B. limit the price to the efficient level.
C. limit total consumption to the efficient quantity.
D. Any of these would bring the market to its efficient level.
Answer: A
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Japan's currency is called Yen. The value of Japan's income per capita in dollars is high if ________
A) the value of Japan's income per capita in yen is low B) the income per capita of the U.S. is high C) the dollar/yen exchange rate is high D) the dollar/yen exchange rate is low
The economy has gone into a recession. You have majored in computer science and, because of the recession, have difficulty in finding a job. Should you go back to school and get a second major?
A) No, the recession will have no impact on my ability to get a job or my future income. B) Yes, the recession will lower income in my field permanently. C) No, the recession will most likely be short-lived and I can get a job after it is over. D) Yes, the recession will ensure that you will never find a job as a programmer.
A basic rule of thumb to predict inflation is that it equals:
A. nominal wage increases minus productivity growth. B. real wage increases minus productivity growth. C. productivity growth minus nominal wage increases. D. productivity growth plus nominal wage increases.
Which of the following is a main factor that explains the differences in the incomes of U.S. households?
A. inheritances B. luck and misfortune C. discrimination D. All of these