In the case of externalities, government can use taxes and subsidies to turn an inefficient outcome into an efficient outcome
Indicate whether the statement is true or false
True
You might also like to view...
Describe the market structure of the beverage industry
What will be an ideal response?
A tax that is structured so that people pay the same percentage of their income in taxes is called a(n):
a. flat tax. b. regressive tax. c. progressive tax. d. excise tax.
To an economist, the cost of a college education
a. includes the income that the student could have earned during the time spent in college. b. can be measured solely by the dollar cost of tuition, books, and other fees. c. includes only the cost of schooling, not the cost of housing and food. d. excludes financial aid in computation of the cost of schooling. e. All of the above are correct.
When Mark recruits a new motor mechanic in his car repair and service workshop, the number of cars serviced in a day increases by five. If the number of servicing orders received by Mark remains the same, it implies that:
a. the marginal physical product of the new motor mechanic is five. b. the marginal revenue product of the new motor mechanic is zero. c. the marginal revenue product of the new motor mechanic is five. d. the marginal physical product of the new motor mechanic is zero.