Economist John Maynard Keynes wrote that recessions can be prolonged and interminable; therefore, government action is needed to jump-start the economy.

The entire U.S. federal budget process, beginning with the delivery of the President's budget to Congress and ending with the beginning of the fiscal year, takes about _____

a. one month b. six months c. nine months d. one year e. three months

Which of the following statements is not correct?

a. Patents help internalize the externalities associated with technological advances. b. Economists typically prefer regulations to corrective taxes because regulations provide more incentives for firms to seek continued reductions in pollution. c. Allowing firms to trade pollution permits will lower the total cost of reducing pollution. d. A big impediment to implementing the Coase theorem in many cases is high transactions costs.