If there are both external benefits and external costs associated with the production and ...

If there are both external benefits and external costs associated with the production and consumption of a good, and the external benefits are greater than the external costs,
 a. Taxing it could bring us closer to the efficient solution
 b. Subsidizing it could bring us closer to the efficient solution
 c. Neither a tax or a subsidy could bring us closer to the efficient solution
  d. None of the above is true.

Question 2

If inflation rises or falls faster than people forecast in the short run but not in the long run, what are the shapes of the Phillips curves?
 a. The Phillips curve is vertical in the short run, and upward sloping in the long run.
  b. The Phillips curve is downward sloping in the short run, and vertical in the long run.
  c. The Phillips curve is upward sloping in the short run, and horizontal in the long run.
  d. The Phillips curve is vertical in the short run and long run.

Question 3

If there are both external benefits and external costs associated with the production and consumption of a good, and the external benefits are less than the external costs,
 a. Taxing it could bring us closer to the efficient solution
 b. Subsidizing it could bring us closer to the efficient solution
 c. Neither a tax or a subsidy could bring us closer to the efficient solution
  d. None of the above is true.

Question 4

Which of the following international organizations do globalization critics claim is serving the interests of large multinational corporations?
 a. NATO
  b. The World Bank
  c. The Fed
  d. The United Nations
  e. The International Labor Organization

Question 5

If employees and employers always accurately forecast inflation, what is the shape of the Phillips curve?
 a. It is vertical in the short run, and upward sloping in the long run.
  b. It is downward sloping in the short run, and vertical in the long run.
  c. It is upward sloping in the short run, and horizontal in the long run.
  d. It is vertical in the short run and long run.

Question 6

Which of the following is not considered a criticism of globalization?
 a. International corporations serve only the interests of the corporations.
  b. Globalization promotes free but not fair trade.
  c. Globalization encourages harmful labor practices.
  d. Globalization promotes only trade based on comparative, and not absolute advantage.
  e. Globalization occurs at the cost of environmental quality.

Question 7

If there are both external benefits and external costs associated with the production and consumption of a good, and the external benefits are equal in magnitude to the external costs,
 a. More than the efficient amount is being produced
 b. Less than the efficient amount is being produced
 c. the efficient amount is being produced
 d. We do not know whether the efficient amount, or more or less, is being produced.

Question 8

If inflation is underestimated by decision makers in the economy when it is rising, the SRAS curve will tend to be:
 a. vertical.
 b. horizontal.
 c. downward sloping.
  d. upward sloping.

Question 9

_____ is the argument that with globalization, countries compete for international investment by offering low or no environmental regulations or labor standards.
 a. Free rider problem
  b. Tragedy of the commons
  c. Race to the bottom
  d. Flag of convenience
  e. Enlightened self-interest

Question 10

If there are both external benefits and external costs associated with the production and consumption of a good, and the external benefits are less than the external costs,
 a. More than the efficient amount is being produced
 b. Less than the efficient amount is being produced
 c. the efficient amount is being produced
 d. We do not know whether the efficient amount, or more or less, is being produced.

Question 11

Many economists think that, in the long run, the economy generally tends to move toward:
 a. an accelerating inflation rate.
 b. a stable price level.
 c. the natural or full-employment rate of inflation.
 d. the natural or full-employment rate of unemployment.