In order for a Pigouvian tax to be efficient, the amount of revenue raised plus the economic value of the reduction in pollution must together be larger than the loss in consumer and producer surplus.
Answer the following statement true (T) or false (F)
True
Rationale: The benefits of the tax are the reduction in pollution damage and the tax revenue that is raised; the cost is that consumers pay higher prices and producers receive lower prices.
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Prior to 1970, mortgages were ________ resold in the secondary market
A) never B) often C) rarely D) always
A network externality is:
A. a direct effect on an economic decision maker. B. an uncompensated effect on someone other than the person who caused it. C. an indirect effect on an economic decision maker. D. the effect that an additional user of a good or participant in an activity has on the value of that good or activity for others.
According to classical macroeconomic theory, changes in the money supply affect
a. real GDP and the price level. b. real GDP but not the price level. c. the price level, but not real GDP. d. neither the price level nor real GDP.
If the price of a typical good falls, the quantity supplied for that good will
A. automatically increase to zero. B. remain the same. C. decrease. D. increase.