If a firm is NOT forced to pay for external costs, it will
A) continue to overproduce the good.
B) continue to under produce the good.
C) request a subsidy from the government.
D) raise prices.
Answer: A
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The growing popularity of energy conservation has enticed large home improvement stores like Home Depot and Lowes to offer tankless water heaters
How does the fact that home improvement stores now offer these products affect the tankless water heater market? A) The demand curve for tankless water heaters shifts to the left. B) The supply curve for tankless water heaters shifts to the left. C) The supply curve for tankless water heaters shifts to the right. D) The demand curve for tankless water heaters shifts to the right.
Tariff revenues are an important generator of revenue in less-developed countries
a. True b. False
"He who pays a tax should receive the benefit from the expenditure financed by the tax." This statement reflects which of the following principles for a tax?
a. Fairness of contribution. b. Ability-to-pay. c. Benefits-received. d. Inexperience-to-collect.
An input is indivisible if:
A. it cannot be increased to produce a larger quantity of output. B. it cannot be used as a substitute for other inputs in the production process. C. it is sufficiently inexpensive to purchase that firms will want to buy as much as they can. D. it cannot be scaled down to produce a smaller quantity of output.