Use the following information to answer the question below. It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. As a result, operators of hydroelectric power-generating plants downstream along the river find that they must clean up the river's water before it flows through their equipment. If the government intervenes and corrects the externality in the situation described above, we would expect
A. production in the paper mills to decrease.
B. production of the hydroelectric power plants to decrease.
C. the price of paper from the mills to decrease.
D. the output of the paper mills to increase.
Answer: A
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Which of the following lists has variables that all shift a good's demand curve?
A) price of the good, preferences, prices of substitution goods, income B) income, preferences, number of buyers, price of complementary good C) expectation of future price, price of the good, number of buyers, income D) Both answers A and B are correct.
The English philosophers Jeremy Bentham and John Stuart Mill founded the school of thought called
a. liberalism. b. libertarianism. c. mobilism. d. utilitarianism.
The idea that firms incur actual costs when they change prices is known as _____. Firms in countries with lower inflation rates will change price _____ frequently compared to those countries where inflation is higher
Fill in the blank(s) with correct word
Explain the Ricardian equivalence theorem.
What will be an ideal response?