What can the government do to solve the problem of excessive use of common resources?
Government can impose regulations or taxes to reduce consumption of a common resource. In some cases, government can transform the common resource into a private good.
Economics
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A vertical aggregate supply schedule implies that
a. real wages cannot impact output. b. unemployment cannot impact output. c. aggregate demand is horizontal. d. the price level does not impact output.
Economics
Air pollution is a problem because
A) people are greedy. B) people are not environmentally conscious. C) people make use of air without having to bear all the costs of their actions. D) a market economy does not provide as strong an incentive for environmental cleanup as a socialist economy.
Economics