Which of the following statements is true?
a. Emissions-trading is trading that allows firms to buy and sell the right to pollute.
b. The Coase Theorem is the proposition that private markets can rarely ever achieve social efficiency.
c. The free-rider problem refers to those who ride on public transit systems without paying.
d. Government failure has never occurred in the United States.
a
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Shoe-leather costs of inflation arise from the
A) increasing costs of apparel (clothes and shoes) as inflation rises. B) decline in the use of money as a unit of account. C) increase of velocity as inflation rises. D) confusion that results from higher inflation. E) increasing costs of agricultural products as inflation rises.
Using the DD-AA framework, which one of the following statements is the MOST accurate?
A) Only monetary policy can bring the economy to full employment. B) Only fiscal policy can bring the economy to full employment. C) Only both monetary and fiscal policies can bring the economy to full employment. D) Both policies are capable of bringing the economy to full employment and low inflation. E) Monetary policy by itself or fiscal policy by itself can bring the economy to full employment.