Which Factor Contributed to the Termination of Stagflation in the 1980s

question 62

Multiple Choice

Which factor contributed to the termination of stagflation in the 1980s?

• A)less foreign competition
• B)more government regulation
• C)a reduction in oil prices
• D)a rise in per-unit production costs

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Definitions:

Pollution Permits

Marketable permits allowing holders to emit a certain amount of pollution, used as a regulatory tool to control environmental impacts.

Corrective Tax

A tax designed to induce private decision-makers to take account of the social costs that arise from a negative externality.

Government

The system or group of people governing an organized community, often a state, with the authority to make and enforce laws, policies, and decisions.

Tradable Pollution Permits

A regulatory system that allows companies to buy or sell allowances for a specific amount of pollution, encouraging reduction in overall emissions.