An effluent fee is an example of
A) a government policy to correct for an external benefit.
B) a government policy to promote the production of a product with an external cost.
C) a government policy to promote the production of a product with an external benefit.
D) a government policy to correct for an external cost.
D
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If Ann's utility function is U = W0.5, and she invests in a business which can yield $6,400 with probability 1/5, and $3600 with probability 4/5, then her expected utility is
A) 80. B) 76. C) 64. D) 60.
Which of the following would cause a rightward shift in the AD curve?
A) an increase in the price level B) a decrease in the price level C) an increase in imports D) a decrease in the quantity of money available in the economy E) an increase in government purchases of goods and services