The optimal Pigouvian tax is equal to the marginal social:
a. benefit of pollution at the market-determined level of pollution.
b. cost of pollution at the market-determined level of pollution.
c. benefit when there is zero pollution.
d. cost of pollution at the socially optimal quantity of pollution.
Ans: d. cost of pollution at the socially optimal quantity of pollution.
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Which of the following statements best describes antebellum immigration to the U.S.?
a. Immigration peaked in the 1820s and slowly decreased through the Civil War. b. Immigration in the late 1840s and 1850s were primarily "pulled" to the US by the attractive opportunities available here. c. Immigration from England was relatively constant over time compared to the immigration rate from other nations. d. Large scale German immigration occurred primarily in the early part of this period.
If social regulation increases a firm's fixed and variable costs:
a. then both marginal cost and average total cost will increase, and the firm will produce more. b. then both marginal cost and average total cost will increase, and the firm will produce less. c. then both marginal cost and average total cost will decrease, and profits will increase. d. then marginal cost will increase, average total cost will be constant, and price will decline. e. then both price and quantity produced will fall.
Which of the following is typically NOT an argument used for keeping the U.S. trade embargo with Cuba intact?
A) There is not much economic potential from trade given Cuba's small population and low per capita income. B) Removal of the embargo will cause much more Cuban immigration to the United States. C) If the Cuban economy is weakened just a bit more, the Cuban political-economic system cannot be sustained. D) There will be a backlash among countries supplying such commodities as sugar to the United States if the U.S. buys them from Cuba instead.
Use the IS-LM model to determine the effects of each of the following on the general equilibrium values of the real wage, employment, output, the real interest rate, consumption, investment, and the price level.(a)Tougher immigration laws reduce the working-age population.(b)There's increased volatility in the prices of stocks and bonds.(c)The government tries to achieve tax equity by an increase in the corporate tax rate.(d)Increased computerization reduces stock market brokerage costs.
What will be an ideal response?