Taxes on polluting firms for pollution are intended to
a. raise enough revenue to cut the deficit in half.
b. encourage firms to reduce charges by polluting less.
c. be efficient, i.e., result in no excess burden.
d. raise revenue for general spending needs.
b
You might also like to view...
A buyer values a house at $525,000 and a seller values the same house at $485,000 . If sales tax is 8% and is levied on the seller, then what would be the lowest price that the seller would be willing to sell at?
a. $527,000 b. $523,800 c. $525,000 d. $500,000
You offer an extended warranty for your product that is purchased by a few customers. If the product typically fails 2% of the time, the claim rate will exceed 2% of warranty purchasers because
a. adverse selection will lead those who are more reckless to purchase the warranty b. moral hazard will lead those who purchase to be more reckless c. you systematically underestimate product failure rates d. Both A&B
In a progressive income tax system
A. the average tax rate exceeds the marginal tax rate. B. the marginal tax rate exceeds the average tax rate. C. the tax rate depends solely on how long an individual has been in the labor force. D. high income earners pay a lower percentage of their income in taxes than do low income earners.
If a vineyard wants to raise funds to purchase a new bottling machine, it does so in the
A) factor market. B) output market. C) product market. D) alcoholic beverages market.