Assume that production from an electric utility caused acid rain and that the government imposed a tax on the utility equal to the cost of the acid rain. This is an example of
A) a Pigovian tax. B) the Coase Theorem.
C) a transactions cost. D) a Pigovian subsidy.
A
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Which of the following is true of Western Europe, Japan, Canada, Mexico, and China taken together?
a. All these countries are classified as high-income countries by the World Bank. b. They are all members of the North American Free Trade Agreement [NAFTA]. c. All these countries are considered developing countries by the World Bank. d. They are collectively the largest trade partners of the U.S. e. They are the five largest exporters of agricultural produce in the world.
Economists
a. agree that the costs of moderate inflation are low and that the cost of reducing inflation is small. b. agree that the costs of moderate inflation are low, but disagree about the cost of reducing inflation. c. disagree about the costs of moderate inflation, but agree that the cost of reducing inflation is small. d. disagree about the costs of moderate inflation and disagree about the cost of reducing inflation.
Which of the following will most likely happen if there is a surplus of money?
a. Fewer people will invest in treasury bills. b. Fewer people will exchange money for CDs. c. More people will transfer money from high interest saving accounts to checking accounts. d. More people will exchange money for bonds.
A straight-line downward-sloping demand curve has a price elasticity of demand that:
A. decreases as price decreases. B. is unitary at all prices. C. is zero at all prices. D. increases as price decreases.