Describe the market effects of a carbon tax.
What will be an ideal response?
A carbon tax will shift the supply curve of the taxed good to the left, leading to increased price and reduced quantity.
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Which of the following is an example of a government action to internalize a cost externality?
A) a fine imposed on a company that pollutes a stream B) the closing of a public library C) a sales tax on jewelry D) the increase on bridge tolls
Outsourcing refers to the process in which: a. a firm purchases service from another firm in another country. b. a firm hires laborers from a foreign market. c. the government of a country works toward providing social security and other rights to migrant workers. d. a firm purchases service from another firm
e. workers of a particular country seek employment in a firm of a foreign country.
For international trade to benefit a country, it must benefit all citizens of that country
a. True b. False Indicate whether the statement is true or false
Which of the following is used to test whether a time series follows a unit root process?
A. Wald test B. White test C. Augmented Dickey-Fuller test D. Johansen test