When there are too few or too many resources going to an economic activity

When producers are hard to monitor and marginal costs differ across producers, ________ are an effective method to achieve efficient use of a ________

A) individual transferable quotas; public good B) marginal private benefits; public good C) individual transferable quotas; common resource D) individual transferable quotas; excludable good

Which of the following is a consensus view among economists with regard to fiscal policy?

a. Changes in fiscal policy exert a strong influence on real output, just as the basic Keynesian model suggests. b. Expansionary fiscal policy will not help promote recovery from a recession. c. Restrictive fiscal policy is a potent anti-inflationary weapon. d. Since changes in discretionary policy are difficult to time correctly, fiscal policy should not be altered in response to each minor disturbance.