A government policy that charges coal producers a fee per ton of coal produced (an "effluent charge"), where the fee is determined by the amount of pollutants discharged into the air or water, will lead to a(n):
a. decrease in the market equilibrium quantity of coal produced.
b. decrease in the market equilibrium price of coal.
c. increase in the market equilibrium price of coal.
d. a and c are correct.
d
You might also like to view...
According to David Ricardo, an increase in government spending without any tax increase will not increase aggregate demand because
A) consumers will increase their consumption proportionately more than Keynesian economists believe they will. B) consumers will save less than they otherwise would have. C) consumers will consume less and save more to prepare for increased taxes in the future. D) the private sector is more likely than the public sector to spend any extra income on national defense.
Under the European System of Central Banks, the Governing Council is similar in structure to the ________ of the Federal Reserve System
A) Board of Governors B) Federal Open Market Committee C) Federal Reserve Banks D) Federal Advisory Council
The percent change in the quantity of one commodity demanded divided by the percent change in the price of another commodity is the
a. price elasticity of demand b. price elasticity of supply c. income elasticity of demand d. income elasticity of supply e. cross-price elasticity of demand
Pollution charges will be efficient if
a. the charge is just equal to the cost borne by others from the pollution. b. the charge is greater than the cost borne by others from the pollution. c. the charge is less than the cost borne by others from the pollution. d. none of the above.