Taxes can yield the efficient level of pollution if the tax is set equal to the
A) marginal benefit of pollution.
B) marginal external cost of the pollution.
C) marginal social cost of the pollution.
D) equilibrium price of the pollution.
B
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Stock prices increase when expected future dividends ________, interest rates ________, and/or the risk premium ________.
A. decrease; decrease; increases B. increase; increase; increases C. increase; increase; decreases D. increase; decrease; decreases
Steve has two goods he can spend his income on, skiing and skating, and his marginal utilities from each are in the table above. The price of each unit of skiing is $10 and the price of each unit of skating is $5. Steve has $40 to spend
What quantities of skiing and skating should Steve consume to maximize his utility? A) 4 units of skiing and 4 units of skating B) 2 units of skiing and 4 units of skating C) 1 unit of skiing and 2 units of skating D) 5 units of skiing and 5 units of skating
A firm can signal the high quality of its product by
a. spending nothing on advertising to convey that the product is so good that the firm does not even need to advertise. b. spending a large amount of money on advertising. c. getting a patent for the product. d. not worrying about getting a patent for the product.
An outside lag is the time period it takes economists to formulate a stabilization policy.
Answer the following statement true (T) or false (F)