The purpose of an effluent fee is to
A. reward people producing externalities.
B. correct for pollution while keeping the price of the good the same as before the correction.
C. reduce the amount produced of a good and to raise the market price.
D. encourage producers to keep the quantity produced the same while lowering the price.
Answer: C
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Barriers to trade
A) include government policies such as tariffs and quotas. B) have been falling with technological improvements in transportation and communication. C) have risen since World War II as many countries have imposed higher tariffs. D) Two of the above are true.
If an increase in inflation permanently reduced unemployment, then
a. money would not be neutral and the long-run Phillips curve would slope upward. b. money would not be neutral and the long-run Phillips curve would slope downward. c. money would be neutral and the long-run Phillips curve would slope upward. d. money would be neutral and the long-run Phillips curve would slope downward.