A Pigovian tax is intended to:
A. counter the effect of a negative externality.
B. decrease efficiency in a market.
C. decrease total surplus in a market.
D. All of these statements are true.
A. counter the effect of a negative externality.
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Refer to the scenario above. Which investment option will a risk-seeking individual choose?
A) He will choose to invest in Option A. B) He will choose to invest in Option B. C) He will choose to invest in Option C. D) He will be indifferent in investing in any of the three options.
Project Delay Prescott Labs is considering developing a defibrillator product. You know that will require extensive testing and possible modification before it can be launched. Still, you know that even if it is launched two years from now, the present
value of sales over the expected 10 year product lifecycle will cover these costs. But now the boys down at the lab tell you that it may not launch for three years. How does this affect your assessment of going ahead with funding the product?
According to the table shown, what can be said about the cost of living in 2011?
A. It increased 5.3 % from the previous year, and consumers were worse off if their nominal income did not change.
B. It increased by 5.0 % from the previous year, and consumers were better off if their nominal income did not change.
C. It is the base year, so no comparisons can be made in this year.
D. It is the base year, so the cost of the basket of goods did not change.
Each of these is an industrial union except
A. the steel workers' union. B. the auto workers' union. C. the teamsters' union. D. the musicians' union.