Pigouvian subsidization:
A. involves the use of taxes or fees to remedy negative externalities.
B. involves the use of subsidies to remedy negative externalities.
C. is a legal principle requiring a party who takes an action that harms others to compensate the affected parties for some or all of their losses.
D. requires that victims of an externality pay a tax to the producers of the externality.
B. involves the use of subsidies to remedy negative externalities.
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You have the choice of going on vacation to Florida for one week, staying at work for the week, or spending the week doing fix-up projects around your house. If you decide to go to Florida, the opportunity cost of the trip is
A) working and doing fix-up projects. B) working or doing fix-up projects, depending on which you would have done otherwise. C) working, because you would be giving up income. D) nothing because you will enjoy the trip to Florida.
Refer to Table 8.3 . Assume the price of labor is $5.00 and the price of capital is $10.00 and the firm's fixed costs are $15
What production technique will be used to produce the first unit of output? The second? The third? What are the firm's total variable costs, total costs, and marginal costs of producing one unit of output? Two units of output? Three units of output?
Trade restrictions like tariffs and quotas will
What will be an ideal response?
Assume a price elasticity of demand of 0.50. If the tobacco lobby is successful in reducing a tax on the price of cigarettes by 10 percent, the quantity demanded will:
A. Decrease by 5 percent. B. Decrease by 2 percent. C. Increase by 5 percent. D. Increase by 2 percent.