A corrective subsidy induces the ________ to the socially optimal level
A) consumers of a negative externality to increase the quantity consumed
B) producers of a negative externality to increase the quantity produced
C) consumers of a positive externality to increase the quantity consumed
D) producers of a positive externality to reduce the quantity produced
C
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In comparison to an employer in a competitive labor market, a monopsony employer pays a ________ wage rate and hires ________ workers
A) lower; fewer B) lower; more C) higher; more D) higher; fewer
If the Fed decides to sell $10 million in securities and the Paris First National Bank writes out a $10 million check to purchase these securities, then the
a. Paris First National Bank now has $10 million more of excess reserves at the Fed b. Paris First National Bank has $10 million fewer reserves c. Fed has increased its asset position by $20 million d. Fed has reduced its asset position by $20 million e. money supply will likely increase due to the economy's inflationary phase