A local manufacturing plant that emitted sulfur dioxide was forced to stop production because it did not comply with local clean air standards. This decision provides an example of
a. a direct regulation of an externality.
b. corrective taxes.
c. a Coase theorem solution to an externality.
d. the misuse of a subsidy.
a
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The marginal propensity to consume (MPC) is the fraction of additional income that is spent
Indicate whether the statement is true or false
Economics is a part of the
A) social sciences. B) natural sciences. C) biological sciences. D) organizational sciences.
Import quotas and tariffs make domestic sellers better off and domestic buyers worse off
a. True b. False Indicate whether the statement is true or false
An advantage of a corporation is that
a. owners have limited liability for debt. b. the business is subject to little government regulation. c. owners pay fewer taxes than owners of other forms of business. d. owners have direct and immediate control over daily management of the business.