In Contrast to the Need for Legal Enforcement Under a System

question 56

Multiple Choice

In contrast to the need for legal enforcement under a system of direct controls, a taxes approach

• A)is subject to greater uncertainty of payment of fees.
• B)makes taxes automatic and certain.
• C)speeds the prosecution and conviction process.
• D)does not actually reduce pollution, merely the cost of monitoring it.

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Definitions:

Real GDP

The measure of the value of economic output adjusted for price changes (inflation or deflation), reflecting the real volume of production.

Price Level

The overall price mean for each and every product and service in the economic sector.

Aggregate Supply Curve

A graphical representation showing the relationship between the overall price level in an economy and the total output produced by firms at that price level.

Aggregate Demand

Aggregate demand represents the total demand for all goods and services in an economy at a given overall price level and in a given time period.