201.A negative externality:
is not as costly as a positive externality.
is a cost that individuals or firms impose on others without having to offer
is immune to economic incentives.
is an unavoidable consequence of budget deficits.
202.A cap and trade system:
203.Economists generally agree that ____ are the best way for governments to reduce
greenhouse gases to address climate change.
Use the following to answer questions 204-206:
Scenario: Technological Progress and Productivity Growth in Techland
In Techland, from 1980 to 2010, holding technology and human capital fixed, increasing
physical capital per worker from $25,000 to $100,000 would have led to a doubling of real GDP
per worker, from $40,000 to $80,000. However, not only did physical capital per worker increase
from $25,000 to $100,000, but technological progress shifted the productivity curve upward so
that real GDP per worker actually increased from $40,000 to $320,000.
204.(Scenario: Technological Progress and Productivity Growth in Techland) Look at the
scenario Technological Progress and Productivity Growth in Techland. What was the
growth rate of real GDP per capita in Techland?