To correct for the social impact of pollution, the government should levy a per-unit tax
A) that is the same for all polluters regardless of their locations or sizes.
B) according to the economic damage of the pollution.
C) according to the business activity of the polluter.
D) only to those polluters that can afford to pay for the tax.
B
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A credit market instrument that pays the owner a fixed coupon payment every year until the maturity date and then repays the face value is called a
A) simple loan. B) fixed-payment loan. C) coupon bond. D) discount bond.
When a country's ability to maintain its fixed exchange rate is doubted by investors:
A. it may fall under a speculative attack. B. the exchange rate is likely to spiral upward, out of control. C. the value of its currency tends to appreciate too quickly. D. All of these statements are true.
An increase in demand will increase the quantity sold but not the price in a market if:
a. supply is perfectly elastic b. supply is perfectly inelastic c. supply is relatively elastic d. supply is relatively inelastic
Which of the following could shift the labor supply curve and increase employment?
a. An increase in the number of firms b. An increase in income tax rates c. Increased spending on welfare programs d. Increased federal funding for education e. A decrease in income tax rates