A policy that directly targets the externality:
A. encourages innovation, which matches the goal to stop production of the externality.
B. gives firms incentives to find different ways to do things, rather than pay for the right to create the externality.
C. Both of the above statements is true.
D. None of these statements are true.
C. Both of the above statements is true.
Economics
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If the cross elasticity of demand between goods X and Y is positive and between goods X and Z is negative, then X and Y are ________ and X and Z are ________
A) price inelastic; complements B) complements; substitutes C) substitutes; complements D) price inelastic; income elastic
Economics
Open-market operations are such a powerful tool of monetary policy that they are seldom used
a. true b. false
Economics