Open market operations directly change the rate of interest at which banks can borrow funds from the Fed

A pollution tax is:

a. a positive externality used to offset a negative one b. a price per unit of discharge of pollution c. a tax on pollution control equipment d. itself a form of negative externality

The idea of the "invisible hand" tells us that individuals will pursue:

A. mutually beneficial trades with other individuals to maximize surplus. B. trades in which they will be the clear winner and the other will be a loser. C. the most equitable outcome possible. D. as few government policies as possible so the market can act freely.