The fact that as snow accumulates, snow shovel sales rise, suggests the two are
A. neither directly correlated nor inversely correlated.
B. both directly correlated and inversely correlated.
C. inversely correlated.
D. directly correlated.
Answer: D
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Large sport utility vehicles (SUVs) add significantly to air pollution because they do not have to meet passenger auto emission standards. The purchase of an SUV
a. adds less to GDP since the pollution costs are subtracted from GDP. b. adds to nominal but not real GDP because of the pollution costs. c. is a net loss to GDP because the pollution costs are so large. d. increases GDP.
The essence of the trade-off between equality and efficiency is that
A. taxes and transfers reduce incentives to earn income, thus reducing GNP. B. people are ideologically opposed to socialistic income redistribution. C. redistribution violates the “work ethic.” D. people are prejudiced against blacks and women.