Pollution rights may be traded if
A. polluters try to hide pollution.
B. administrators are uncertain about Pigouvian taxes.
C. there is no market for pollution.
B. administrators are uncertain about Pigouvian taxes.
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Compared to most other industrialized countries shown in the text, the national debt as a percentage of GDP in the United States is:
a. substantially larger. b. the same. c. slightly larger. d. substantially smaller.
When Electronic Arts, the company behind the games Zuma and Plants vs. Zombies, sold stock to the public for the first time in September 1989, funds were being raised in a ________ market, and when those newly issued shares are resold to other buyers,
the sales take place in a ________ market. A) primary; primary B) primary; secondary C) secondary; primary D) secondary; secondary
Which of the following events will increase the quantity demanded of bottled water?
A) a fall in the price of bottled water B) a rise in the price of bottled water C) a rise in the price of a fitness club membership D) a fall in the price of soda E) an increase in the number of buyers of bottled water
There is a difference between who is legally required to send a tax payment to the government and who bears the burden of the tax. Which of the following would have the most impact on who bears the burden of an excise tax?
A) The elasticity of demand for the item that is taxed. B) whether the tax is based on the ability-to-pay principle or the benefits-received principle C) whether the tax is imposed by the federal government or a state government D) The motive for the tax. If the tax is designed to raise revenue, more of the burden will fall on firms. If the tax is designed to achieve a social objective (for example, to discourage smoking) more of the burden will fall on consumers.