Answer the following statement(s) true (T) or false (F)
1. Chemical use is associated with a production externality.
2. In the presence of a negative consumption externality, the MSB lies below the MPB.
3. To internalize the consumption externality of pesticide use, a product charge can be implemented as a unit tax.
4. If a unit tax is used to internalize the consumption externality of chemical use, it achieves efficiency if it is set equal to the MSB at the efficient output level.
1. False
2. True
3. True
4. False
You might also like to view...
Fiscal actions to eliminate a recession are likely to decrease the federal budget deficit
Indicate whether the statement is true or false
Refer to the scenario above. What is the expected value of the gamble?
A) 0 B) $50 C) $75 D) $100
In 1975 a pocket calculator cost more than $50; in 1990 a calculator of the same quality cost less than $10 . Which of the following explanations is most consistent with these facts? a. Intense competition in the calculator industry caused the supply curve for calculators to shift to the left, depressing the price. b. An increase in the demand for calculators led to the price drop
c. An improvement in technology caused the supply of calculators to increase, depressing their price. d. As the population grew, fewer expensive calculators were needed, causing prices to fall.
The Darity-Myers thesis states that
A. he heritage of slavery is largely to blame for black poverty. B. welfare dependency creates a culture of poverty. C. black men have become less useful in the emerging economic order and have become marginalized. D. the root problem of black poverty is the high pregnancy rate of unmarried teenage girls.