Because air cargo as an industry involves the generation of pollutants in engine exhaust, the equilibrium price of air cargo services
A) is above the optimal level, and quantity is below the optimal level.
B) is below the optimal level, and quantity is above the optimal level.
C) and quantity of trucking services are both above the optimal level.
D) and quantity of trucking services are both below the optimal level.
E) must fall in order for the market to reach equilibrium.
B
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The International Monetary Fund was created to achieve each of the following goals EXCEPT
A) lend funds to countries with international payment problems. B) lend funds to large government infrastructure projects. C) monitor and offer advice on the exchange rate policies of member nations. D) encourage free convertibility of the currencies of member nations.
Which of the following statements was probably made by an adherent of rational expectations? a. It is rational to pursue any full employment policy because more employment is better than less
b. Unemployment is clearly a case of market failure. c. Programs designed to stimulate employment will only stimulate the price level with no employment gain. d. It is inhumane to have a single person unemployed whatever the inflation cost.