Why do the United States and the European Union governments apply tariffs to solar panel imports, even though solar panels generate positive consumption externalities?
a. They believe that imported solar panels' negative consumption externalities outweigh their positive consumption externalities.
b. They believe that domestic production of solar panels generates negative production externalities that outweigh the positive consumption externalities from imports.
c. They believe that domestic production of solar panels generates positive production externalities that outweigh the positive consumption externalities of imports.
d. They believe that imported solar panels negative production externalities outweigh their positive consumption externalities.
Ans: c. They believe that domestic production of solar panels generates positive production externalities that outweigh the positive consumption externalities of imports.
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An decrease in the velocity of money for given levels of income and the interest rate would shift the
a. LM curve up. b. IS curve up. b. IS curve down. c. LM curve down.
Which of the following is a result of monopolists producing fewer goods and selling them at a higher price than perfectly competitive firms?
a. The elimination of barriers to entry b. Losses c. Diseconomies of scale d. Positive economic profits