A liability rule:
A. involves the use of taxes or fees to remedy negative externalities.
B. involves the use of subsidies to remedy negative externalities.
C. is a legal principle requiring a party who takes an action that harms others to compensate the affected parties for some or all of their losses.
D. requires that victims of an externality pay a tax to the producers of the externality.
C. is a legal principle requiring a party who takes an action that harms others to compensate the affected parties for some or all of their losses.
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When the Federal Reserve raises the growth rate of the money supply to a permanently higher level, this produces ________ in real GDP and ________ in the inflation rate
A) a permanent increase, a permanent increase B) a permanent increase, a temporary increase C) no change, a temporary increase D) a temporary increase, a temporary increase E) a temporary increase, a permanent increase
Allocative efficiency occurs when firms produce:
a. where price equals minimum long run average cost. b. where price equals marginal cost. c. where consumer surplus is zero and producer surplus is positive. d. where marginal benefit equals marginal cost.
In the context of the aggregate-demand curve, the interest-rate effect refers to the idea that, when the price level increases,
a. the real value of money decreases; in turn, the real value of the dollar increases in foreign exchange markets, which decreases net exports. b. the real value of money decreases; in turn, interest rates increase, which decreases net exports. c. households increase their holdings of money; in turn, interest rates decrease, which reduces spending on investment goods. d. households increase their holdings of money; in turn, interest rates increase, which reduces spending on investment goods.
In 2016, ________ of the uninsured were younger than age 35
A) about 10 percent B) less than one-third C) over half D) almost 85 percent