Corrective taxes work by ______.

a. internalizing external costs
b. externalizing internal costs
c. subsidizing moral hazards
d. criminalizing adverse selection

a. internalizing external costs

Economics

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A graph showing the inverse relationship between the economy's rate of unemployment and rate of inflation is called the:

a. Laffer curve. b. aggregate expenditure model. c. Keynesian cross. d. Phillips curve. e. consumption curve.

Economics

A country temporarily producing a combination of 12 units of guns and 5 units of butter would be ________________ (outside/on/inside) the production possibilities curve.


Economics