Which of the following gives pollution-emitting firms an incentive to reduce the damage they do to the environment?
a. Negative externalities
b. Positive externalities
c. Commands and controls
d. Pollution charges
d. Pollution charges
A pollution charge is a tax imposed on the quantity of pollution that a firm emits. A pollution charge gives a profit-maximizing firm an incentive to figure out ways to reduce its emissions—as long as the marginal cost of reducing the emissions is less than the tax.
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To finance a federal budget deficit, the U.S. Treasury borrows by selling:
a. Treasury bills. b. Treasury notes. c. Treasury bonds. d. All of these.
Which of the following is not an effect of an agricultural price support?
A) a surplus B) fewer exchanges C) higher prices paid by consumers D) government purchase and storage of surplus E) higher-quality products
A business that is owned by one individual is a? __________.
A. master limited partnership B. partnership C. limited liability company D. corporation E. sole proprietorship
Which of the following is an important real consequence of the public debt of the United States?
A. It will threaten to bankrupt the Federal government B. It discourages saving among the general public C. It decreases the inequality in the distribution of income in the U.S. D. Its consequent higher interest rates lead to fewer incentives to bear risk and innovate