How can market failure occur in the market for hybrid automobiles? What could the government try to do to improve the situation?
An unregulated market could produce too few hybrid autos since these cars produce benefits for someone other than the buyers and sellers. As such, the government could provide a subsidy or tax credit to those consumers who purchase hybrid or other fuel efficient autos in an effort to promote more purchases and usage of fuel efficient vehicles.
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Refer to Table 18-6. Sasha is a single taxpayer with an income of $60,000. What is his marginal tax rate and what is his average tax rate?
A) marginal tax rate = 17%; average tax rate = 21% B) marginal tax rate = 23%; average tax rate = 38% C) marginal tax rate = 38%; average tax rate = 23% D) marginal tax rate = 38%; average tax rate = 24%
The economy represented in the graph above has
A) low capital mobility. B) high capital mobility. C) perfect capital mobility. D) increasing capital mobility.
If an individual consumer is willing to pay $11 for one unit of a good but is able to purchase it for $7, then his or her consumer surplus from the purchase of that unit would be:
A. $4. B. $7. C. $11. D. $18.
Refer to the figures. Which of the following events would most likely result in inflation?
A. A shift from D 2 to D 1 in Figure A.
B. A shift from D 2 to D 3 in Figure A.
C. A shift from D 2 to D 1 in Figure B.
D. A shift from D 2 to D 3 in Figure B.