Refer to the information in Figure 16.5 below to answer the question(s) that follow.
?Figure 16.5Figure 16.5 shows the marginal benefits of emitting pollution for the only two chemical companies in an industry, Alpha Chemicals and Beta Chemicals. Before any tax on pollution emissions is imposed, each company views pollution as being free.Refer to Figure 16.5. The government decides to impose a tax on pollution emissions to cut total emissions in this industry in half, and based on this decision it has set the tax at $100 per ton of emissions. Following the implementation of this tax, Alpha will reduce its emissions to ________ tons.
A. 25
B. 50
C. 75
D. 100
Answer: A
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Child labor is a widespread problem that applies primarily to children
(a) between the ages of 5 and 14. (b) between the ages of 10 and 14. (c) between the ages of 12 and 14. (d) between the ages of 12 and 16.
If the MPC is 0.5 and the tax rate is 10%, a $500 increase in autonomous government purchases will increase equilibrium income by
A) $225. B) $280. C) $910. D) $1,110.
Policy-oriented economists seek to develop theories to
a. explain how things work so policies can be formulated. b. describe what happened in a particular time period in history. c. describe current economic events. d. find correlations between events. e. change people's values and ethics.
Which of the following is not true with regard to the burden of the U.S. national debt?
a. The debt does burden future generations to the extent that it is sold to foreigners. b. Budget deficits are not appropriate for stabilization purposes under any circumstances. c. The debt will reduce the nation's capital stock if incurred during a fully employed economy. d. The large deficits of the 1980s and early 2000 were particularly worrisome because they were not attributable to recessions.