Efficiency is reached by allocating resources to those who have the greatest willingness to pay for them. This can be achieved in a market where a negative externality is present by:
A. taxing consumers.
B. giving consumers a subsidy.
C. place a quota at the efficient level.
D. All of these will achieve efficiency.
A. taxing consumers.
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A relationship that depends on the basic behavior of consumers and firms and remains unchanged over long periods is called a ________ relationship
A) cyclical B) structural C) frictional D) dynamic
Which of the following changes would cause American net exports to decrease?
A) A decrease in the real value of the dollar B) A decrease in American income C) An increase in foreign income D) A shift in demand by American consumers away from domestically produced goods
Which of the following statements is true?
a. Income earned by a worker with a college degree grows more rapidly than a worker without a college degree during their early working years. b. A worker with a college degree always earns less than a worker without a college degree. c. A worker with a college degree always earns more than a worker without a college degree. d. A worker without a college degree initially earns more than a worker with a college degree but the latter surpasses the former in due course of time. e. Both the workers earn equal incomes after a certain period of time.
The lemons model is used to analyze:
A. markets with asymmetric information. B. the market for citrus fruit. C. the Low-Hanging-Fruit Principle. D. markets in which search is costly.