To make a market efficient in the presence of a negative externality, a tax could be imposed that is equal to the marginal
a. social cost
b. private benefit
c. social cost minus marginal private cost
d. social cost minus marginal private benefit
e. private benefit minus marginal social benefit
C
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From the Monetarist perspective, the aggregate supply curve is
A) vertical. B) horizontal. C) sensitive to changes in the money supply. D) sensitive to changes in consumption.
During unanticipated inflation,
A. savers lose. B. borrowers gain. C. lenders lose. D. All of the choices are correct.
Which of the following is not a determinant of autonomous consumption?
A. Taxes. B. The price level. C. The availability of credit. D. The disposable income level.
Related to the Economics in Practice on page 218: A study discussed in the Economics in Practice found that NFL teams that trade two lower draft picks for one higher pick tend to ________ player productivity and therefore ________ for that pick in terms of the draft-pick trade.
A. underestimate; underpay B. overestimate; overpay C. overestimate; underpay D. underestimate; overpay