Correcting a market with an externality through taxation is ________ correcting it through a quota.
A. less efficient than
B. more efficient than
C. just as efficient as
D. Any of these statements could be true depending on whether the tax is imposed on the buyer or seller.
Answer: B
You might also like to view...
Someone can become an inefficient producer of a particular good by becoming an extremely potent producer of some other good
A) if efficiency and inefficiency are not calculated in terms of opportunity costs. B) if efficiency is measured in terms of labor hours required to produce each good. C) if a larger output of one good entails a smaller output of the other. D) if the demand for one of the goods declines.
National defense and coastal lighthouses are examples of
a. public goods. b. private goods. c. high marginal cost goods. d. depletable goods.
Which of the following comparisons best illustrates a compensating differential?
a. John's wage is higher than Jane's because the value of John's marginal product is higher than Jane's. b. Karl's wage is higher than Kay's because Karl is very personable, and Kay is very gruff. c. Beth's wage is higher than Bill's because Beth's job may cause long-term health problems, and Bill's job will not impair his health. d. All of the above are good illustrations of compensating differentials.
Which of the following would make the equilibrium real interest rate increase and the equilibrium quantity of funds decrease?
a. The demand for loanable funds shifts right. b. The demand for loanable funds shifts left. c. The supply of loanable funds shifts right. d. The supply of loanable funds shifts left.