Refer to the above figure. The highest price that consumers would be willing to pay for quantity Q2 is
A) P2.
B) P0.
C) P1.
D) cannot be determined from the diagram.
C
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The expansionary monetary and fiscal policies of the 1960s resulted in
A) low inflation rates and low rates of unemployment. B) high inflation rates and high rates of unemployment. C) high inflation rates and low rates of unemployment. D) low inflation rates and high rates of unemployment.
In the early 1980s, the disinflation in the United States
a. was accompanied by rapidly growing deficits. b. was costless in terms of output and employment effects. c. was the result of a well-publicized expansionary monetary policy. d. did not result in a severe recession.
Another name for a "flat-rate tax" in which the same tax rate applies to all income earners is a
A) proportional tax. B) progressive tax. C) regressive tax. D) passive tax.
"The optimal level of pollution is zero." Do you agree or disagree? Why?
What will be an ideal response?