Which of the following is a common method used by government to cope with the situation in which production of a good creates an external cost?

Economists are concerned that a large cost to nations entering into a monetary union is:

A) the inability to collect taxes. B) the inability to rescue banks or stimulate the economy via a lender-of-last-resort mechanism. C) the tendency toward ever higher deficits. D) sticky prices.

Looking at the components of the income approach we see that

A) compensation of employees is the largest category. B) consumption is the largest category. C) profits are the largest category. D) rental income is the largest category.