An advantage offered by pollution taxes that is not offered by command-and-control policies is that:
A. under pollution taxes, pollution is usually reduced to zero.
B. a pollution tax decreases the price of the polluting good.
C. under pollution taxes, the government receives tax revenues that may be used to clean up pollution.
D. pollution taxes decrease the demand for the good generating the pollution.
Answer: C
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Involuntary part-time workers are workers who
A) work less than 35 hours but would like to work full time. B) work more than 35 hours but would like to work less than 35 hours. C) work have lost their jobs within the last four weeks and are seeking another job. D) work less than 35 hours by choice. E) have withdrawn from the labor market.
Which of the arguments Staples and Office Depot made in defense of their proposed merger would be least defensible on economic grounds?
A) There would be substantial economies of scale. B) The two firms were in competition with all other office supply stores, not just office supply superstores. C) The history of low pricing by the two stores meant that they would not raise prices in the future after they merged. D) Entry into the office supply market is relatively easy.
When the average total cost is rising, it must be the case that the
a. average total cost is below average fixed cost b. fixed cost is not very high c. marginal cost is greater than the average variable cost d. average fixed cost exceeds average variable cost e. average variable cost exceeds average total cost
Adam Smith
A. argued that capitalism is often confused with democracy. B. wrote Das Kapital. C. said that the entrepreneur is motivated by self-interest. D. coined the phrase: "From each according to his ability, to each according to his needs."