If those who consumed common resources were subject to a tax that was equal to the external costs that they imposed due to the negative externality created:
A. an efficient level would be reached.
B. total surplus would be maximized for the whole society.
C. individuals would consume less.
D. All of these statements are true.
D. All of these statements are true.
You might also like to view...
Which of the following is not crucial to the Harrod-Domar model?
a. population growth rate b. marginal propensity to save c. incremental capital-output ratio d. marginal propensity to consume e. all were crucial to the Harrod-Domar model
A monopolistically competitive firm may earn above normal profits or may incur losses in the short run
a. True b. False Indicate whether the statement is true or false
Based on the graph showing a reduction in the growth of the money supply, as the economy moves from point D to point E on the short-run Phillips curve, real wages rise, causing companies to ______.
a. hire more new workers
b. receive higher relative prices
c. hire fewer new workers
d. increase production
Which of the following is a resource as the term is used by economists?
A. land B. buildings C. labor D. all of the above