A five-cent deposit on beer bottles
A) provides a positive incentive because it rewards people for recycling.
B) provides a negative incentive because it punishes people who do not recycle.
C) is an irrational policy, because it fails to take into account incentives.
D) is an irrational policy, because it fails to take into account self-interest.
A
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Cost curves shift if i. technology changes. ii. the prices of factors of production change. iii. productivity changes
A) only i B) i and iii C) only ii D) i and ii E) i, ii, and iii
Because expected inflation is typically positive, we know that
A) the nominal interest rate is generally less than the real interest rate. B) the real interest rate is generally less than the nominal interest rate. C) the nominal and real interest rates are generally equal. D) the real interest rate is approximately equal to zero.