The goal of industrial policy should be that
a. industries yielding the largest positive externalities should receive the biggest subsidies.
b. any industry that produces negative externalities should be heavily taxed.
c. any production process that produces negative externalities should be shut down.
d. all industries that produce positive externalities should be equally subsidized.
a
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If a firm faces a labor supply curve that is positively sloped, then the marginal cost of labor curve
A) equals the wage rate. B) equals the minimum wage. C) lies above the value of marginal product curve. D) lies above the labor supply curve.
Linking policy instruments to target variables are the
A) indices of economic welfare. B) structural economic relations. C) exogenous nonpolicy variables. D) irrelevant side effects.