How does a pollution tax work?
What will be an ideal response?
A pollution tax raises a firm's private costs, decreasing supply, and reducing exchange and consumption of the product, thereby reducing pollution. Avoiding the tax is an incentive for the firm to reduce pollution.
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What does the Law of Supply state? What is the key feature of a typical supply curve?
What will be an ideal response?
The major criticism of real business cycle models is
A) positive technology shocks actually push real GDP above the economy's potential GDP. B) this model relies too heavily on monetary explanations for fluctuations in real GDP. C) negative technology shocks actually push real GDP below the economy's potential GDP D) negative technology shocks are uncommon and can't explain all business cycle fluctuations.
All of the following were important colonial industries except:
a. tobacco production. b. production of ships' stores. c. manufacturing of finished metal products. d. shipbuilding.
An increase in income in other countries, other things equal, would cause U.S. _____
a. exports to decrease and imports to increase b. exports to increase and imports to increase c. imports to decrease and exports to decrease d. imports to increase and exports to remain unchanged e. imports to remain unchanged and exports to increase