A tax on pollution would:
a. increase the quantity of pollution generated by giving firms the right to pollute.
b. result in firms polluting the same amount as before the imposition of a tax.
c. decrease the quantity of pollution generated
d. have an indeterminate impact on pollution levels.
c
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Suppose Company P could create a socially beneficial product if they were sure they could make a profit by doing so. What could the government do to help them?
a. Grant a patent to Company P to eliminate competition for a period of time. b. Pass legislation requiring Company P to create the product. c. Place a restriction-of-trade tax on Company P if they fail to create the product. d. Seize the plans for the product and create the product in a government facility.
In a competitive market, the market demand is Qd = 60 - 6P and the market supply is Qs = 4P. A price ceiling of $3 will result in a
A. shortage of 15 units. B. surplus of 30 units. C. surplus of 12 units. D. shortage of 30 units.
The basic problem that a market system handles is achieving cooperation and plan coordination among people despite
What will be an ideal response?
In the traditional Keynesian model, if the government raises current taxes
A. the C + I + G + X line will shift down but the aggregate demand curve will not shift. B. the C + I + G + X line will shift up and the aggregate demand curve will shift to the right. C. the C + I + G + X line will shift up but the aggregate demand curve will not shift. D. the C + I + G + X line will shift down and the aggregate demand curve will shift to the left.