Refer to Figure 5-10. One way to obtain the economically efficient amount of chicken pox vaccinations is for governments to subsidize these vaccinations
What is the size of the per-vaccination Pigovian subsidy that the government must provide to internalize the external benefits?
A) (PE - PF) B) PE C) (PF - PG) D) (PE - PG)
D
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Which of these countries' growth rates of real GDP per person have exceeded the United States' growth rate of real GDP per person over the last century?
a. Canada and China b. China and India c. Germany and India d. Germany and Pakistan
You are hired by the Bureau of Economic Analogies (BEA) as an economic consultant. The chairperson of the BEA tells you that he believes the current unemployment rate is too high. The unemployment rate can be reduced if aggregate output increases. He wants to know what policy to pursue to increase aggregate output by $500 billion. The best estimate he has for the MPC is 0.75. Which of the following policies should you recommend?
A. Increase government spending by $500 billion and reduce taxes by $500 billion. B. Increase both government spending and taxes by $500 billion. C. Reduce government spending by $500 billion and reduce taxes by $500 billion. D. none of the above