Air pollution is an external cost because it
A) is a pollution of the external environment.
B) is a cost not borne by the producer of the good.
C) benefits no one.
D) is not associated with resource use.
E) is created only when production occurs.
B
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Which of the following is considered contractionary fiscal policy?
A) The New Jersey legislature cuts highway spending to balance its budget. B) Legislation removes a college tuition deduction from federal income taxes. C) Congress increases the income tax rate. D) Congress increases defense spending.
Globalization of markets can reduce oligopoly power by
a. increasing the number of competitors b. increasing market prices c. bypassing antitrust legislation in a particular country d. identifying new markets for goods and services e. reducing the economies of scale