Author Question: As a result of technology spillovers: Taxes may move us closer to the efficient output level in such ... (Read 47 times)

cartlidgeashley · **on:** Jun 30, 2018

As a result of technology spillovers: Taxes may move us closer to the efficient output level in such industries.
a. Other members of society bear external costs.
b. Too much production takes place in the high technology areas.
c. Taxes may move us closer to the efficient output level in such industries.
d. None of the above are true.

Question 2

Which of the following statements was probably made by an adherent of rational expectations?
a. It is rational to pursue any full employment policy because more employment is better than less.
b. Unemployment is clearly a case of market failure.
c. Programs designed to stimulate employment will only stimulate the price level with no employment gain.
d. It is inhumane to have a single person unemployed whatever the inflation cost.