On efficiency grounds, corrective taxes should not be given as compensation to those individuals harmed by negative externalities

Everything else held constant, an increase in government spending will cause

A) aggregate demand to increase. B) aggregate demand to decrease. C) the quantity of aggregate demand to increase. D) the quantity of aggregate demand to decrease.

Refer to Figure 9.6. The government policy pictured is

A) a price ceiling of $20. B) a price support of $20. C) a price ceiling of $15. D) a price support of $15. E) A quota of 600.