Which of the following is true of a corrective tax?
a. It is also referred to as Pigouvian tax
b. It increases the deadweight loss caused by negative externalities.
c. It is inflexible compared with command-and-control regulation.
d. It needs to be updated with advances in technology.
a
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You are running a small yard maintenance business for the summer. What do you expect to happen to the number of yards you can maintain in a day as you add workers if you don't purchase more capital equipment (like mowers and leaf blowers)?
What will be an ideal response?
When the ________ interest rate is low, there are greater incentives to ________ and fewer incentives to ________
A) nominal; lend; borrow B) real; lend; borrow C) real; borrow; lend D) market; lend; borrow
Which of the following is the best example of opportunity cost?
A) a company's expenditures on a training program for its employees B) the rate of return on a company's investment C) the amount of money that a company can earn by depositing excess funds in a money market fund D) the profit that a company forgoes when it decides to drop one product line in favor of another one
Irish aid to developing countries appears in the Balance of Payments as:
(a) A credit item in the current account; (b) A debit item in the current account; (c) A debit item in the capital account; (d) A debit item in the financial account.