Economists tend to view taxing polluting activities as an attempt to
What will be an ideal response?
encourage polluters to pay attention to the costs they are ignoring.
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Answer the following statement(s) true (T) or false (F)
1. We know that the producer's surplus accruing to a simple monopoly firm must be greater than operating in a competitive market, else firms would not act as monopolists. 2. In both the short-run and the long-run, a monopoly is guaranteed to earn positive profits. 3. An excise tax will increase the deadweight loss due to monopoly, but an excise subsidy can reduce the deadweight loss. 4. An unregulated, profit maximizing monopoly will never set a price where demand is inelastic. 5. The large increase in the price of oil and in the total revenues and profits of the US oil industry in the 1990's are evidence that it was exercising monopoly power.
Typically, when someone borrows money from a bank, M2 ________, because ________
A) increases; the money is held for a while in a liquid form B) decreases; the money is held for a while in a liquid form C) does not change; the loan affects only the subcategories within M2 D) decreases; of the decline in the bank's vault cash E) none of the above
Three basic decisions must be made by all economies. What are they?
a. How much will be produced, when it will be produced, and how much it will cost. b. What the price of each good will be, who will produce each good, and who will consume each good. c. What will be produced, how goods will be produced, and for whom goods will be produced. d. How the opportunity cost principle will be applied, if and how the law of comparative advantage will be utilized, and whether the production possibilities constraint will apply.
The diagram that represents how income is distributed among members of a population is known as a(n):
a. indifference curve. b. Laffer curve. c. Edgeworth box. d. Lorenz curve. e. Phillips curve