Producers can be encouraged to internalize external costs by having the government
A. Reduce user fees.
B. Impose emission charges but not pollution fines.
C. Impose pollution fines or higher user fees.
D. Alter market incentives but not through regulatory intervention.
Answer: C
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Tasha decides that when homes in her neighborhood are selling for $150,000 she will not sell her home. When average prices rise to $175,000, she decides that she will put her home on the market. This is an example of:
a. market demand. b. market-day supply. c. an excess supply of homes. d. a positively-sloped supply curve. e. a negatively-sloped supply curve.
Which theory asserts that when the costs of becoming informed and voting are too high, people will not vote in an election?
a. Theory of rational ignorance b. Median voter theory c. Normative political theory d. Theory of majority rule
One lesson that American policy makers can learn from the health care systems of other countries is:
a. that private insurance cannot complement government insurance. b. that a government-run system ensures equal access across socio-economic groups. c. the importance of having a safety valve. d. that the mix between general practitioners and specialists is of little importance. e. that people must be willing to accept long waiting lists for expensive services.
In the above figure, the x-coordinate of point b is
A) 1. B) 2. C) 3. D) 14.