A tax on firms for polluting will be most effective in reducing pollution at low cost if the tax
A) is levied on a one-time, lump-sum basis.
B) per unit of pollutant is constant.
C) per unit of pollutant is lower for low polluting firms.
D) per unit of pollutant is proportioned to profits or ability to pay.
B
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A union may attempt to obtain stricter certification requirements or longer apprenticeships. These changes would raise workers' wages because they:
a. create unnecessary unemployment. b. shift in labor supply curve leftward. c. decrease the marginal product of labor. d. reduce management's use of featherbedding.
Firms produce too little output
a. when tort laws are not enforced b. in perfectly competitive markets c. to achieve economic efficiency d. when they have monopoly power e. when there are no remaining Pareto improvements
Which region has the lowest GDP per capita?
a. South Asia b. Latin America and Caribbean c. Sub-Saharan Africa d. Europe and Central Asia
One of the two criteria for a resource to be considered as a natural resource is that it must:
A) have been produced. B) not be part of the environment. C) be part of a factory or building. D) be available for the production of goods and services.