Suppose a wallet firm has been dumping its wastes into the local river. The government finds out and insists that the firm pay for the cost of the river cleanup. As a result, we can expect:
A. more wallets to be produced at a lower price.
B. more wallets to be produced at a higher price.
C. fewer wallets to be produced at a lower price.
D. fewer wallets to be produced at a higher price.
Answer: D
You might also like to view...
Which set of characteristics below best describes the basic features of monopolistic competition?
A. easy entry, few firms, and standardized products B. easy entry, many firms, and standardized products C. easy entry, many firms, and differentiated products D. barriers to entry, few firms, and differentiated products
For many years the U.S. government imposed quotas on cheap, Middle Eastern oil imports. The U.S. consumer consequently paid $3 billion more per year for oil products. A likely rationale for such a policy is
A. people in the oil industry deserved the transfer. B. conservation. C. one cannot be dependent on foreign supplies of so crucial a resource. D. American oil was of higher quality and deserved a higher price.
The ________ curve has a positive slope because as prices of final goods and services rise, prices of inputs rise more slowly
A) short-run aggregate demand B) short-run aggregate supply C) long-run aggregate supply D) long-run aggregate demand
According to a model of intergenerational equity, if future generations are expected to be better off than the current generation, transfers should
A. go from the richer generation to the poorer generation. B. not be done at all. C. go from the poorer generation to the richer generation. D. be weighted by increases in the inflation rate.