Which of the following statements is correct about a market in which pollution is emitted?
a. Both corrective taxes and pollution permits internalize the externality of pollution.
b. Corrective taxes internalize the externality of pollution, but pollution permits do not internalize that externality.
c. Corrective taxes fail to internalize the externality of pollution, but corrective taxes internalize that externality.
d. Neither corrective taxes nor pollution permits internalize the externality of pollution.
a
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Refer to the scenario above. What is the present value of the gift voucher for Jim?
A) 12 utils B) 22.5 utils C) 90 utils D) 180 utils
The table below gives the quantities and prices for 2005 and 2015 for an economy that produces just two goods: sailboats and coconuts. Quantities ProducedPrices?2005201520052015Sailboats1020$500$525Coconuts2,0002,400$1$2 For this economy that produces just sailboats and coconuts, and with 2005 as the base year, real GDP was approximately ________ times larger in 2015 than it was in 2005.
A. 1.34 B. 1.77 C. 2.19 D. 1.65
When the government pays part of my university education, it is
A. internalizing an external cost. B. using direct regulation to discourage an external cost. C. using taxes to discourage an external cost. D. subsidizing an external benefit.
Samuelson's theory of public expenditure demonstrates that
A. an efficient mix of public goods is produced when local land/housing prices and taxes come to reflect consumer preferences. B. government is inefficient and will always engage in too much spending. C. through government regulation of private industry, the optimal level of public good provision is achieved. D. an optimal (or most efficient) level of output exists for every public good.