Public policy towards externalities becomes important when _____
a. transactions costs are zero
b. transactions costs are low
c. transactions case are high
d. there is no relationship between transactions costs and externalities
c
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________ analysis by economists refers to the attempt to answer questions such as what are the effects of a tax on production and consumption decisions
A) Positive B) Negative C) Normative D) Investigative
According to Gordon, which of the following is NOT a plausible explanation for a decrease in the measured growth of capital per worker in the United States after 1973?
A) higher inflation causes overtaxation and discourages saving B) increased labor force participation by women C) slower growth in the capital stock D) lower real wages in response to supply shocks in the 1970s