Biology Forums - Study Force

What policy approach would an economist propose to internalize the externalities created by resource use? What is the basis for, and objection to, this type of policy?
 
  What will be an ideal response?

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Question 2 - Autarchy as used in the text refers to
 
  (a) an economy that does not trade.
  (b) an economy that trades primary products in exchange for manufactures.
  (c) developing country dictatorships.
  (d) the caste system and related social structures.

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Question 3 - In an economy, the portion of household spending that occurs independent of household income is known as
 
  A) autonomous consumption.
  B) dissavings.
  C) the marginal propensity to consume.
  D) the consumption function.

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Question 4 - Rural-urban migrants differ from the rest of the rural population in that they are more likely to be
 
  (a) well educated
  (b) poor
  (c) female
  (d) all of the above

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Question 5 - Developing countries might be unable to respond smoothly to changing international price signals because of
 
  (a) a lack of government regulation.
  (b) an abundance of skilled labor.
  (c) inelastic supply curves.
  (d) limited foreign exchange.

[ 1 ]  The answer should discuss creating and improving the functioning of markets as the preferable policy approach, as opposed to standard-setting and direct provision. The basis for such an approach is the efficiency argument. Objections could cite examples where market instruments might not suffice.

[ 2 ]  A

[ 3 ]  A

[ 4 ]  A

[ 5 ]  C

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