The government is considering levying a tax on the pollution generated from two electric power plants (Plant A and Plant B)
Plant A is located in a city with a high density of population, and Plant B is located in the rural area with a low density of population. The government should A) levy the same tax per unit of pollution on both plants.
B) levy a higher tax per unit of pollution on Plant A because of its higher economic damage.
C) levy a higher tax per unit of pollution on Plant B because of its lower economic damage.
D) tax only Plant A but not Plant B because Plant B generates less revenue.
B
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Which of the following represents the total value of all final goods and services produced in a given period, adjusted for inflation?
a. gross domestic product (GDP) b. gross domestic product (GDP) growth rate c. rate of inflation d. real gross domestic product (RGDP)
The advantage of the consumer price index, calculated by the Bureau of Labor Statistics, over the GDP deflator, calculated by the Bureau of Economic Analysis, is that the CPI
What will be an ideal response?
A fundamental aspect of economics is to
A. analyze how choices are made. B. make sure that we always have sufficient resources. C. satisfy all our wants. D. ensure that every firm makes a profit.
The contention that tariffs should be imposed to protect from import competition an industry that is trying to get started is
A) a basic argument for free trade. B) the infant industry argument. C) dumping. D) a voluntary restraint agreement.