The above figure shows the market for steel ingots. If the market is competitive, then to achieve the socially optimal level of pollution, the government can
A) outlaw the production of steel.
B) institute a specific tax of $25.
C) institute a specific tax of $50.
D) institute a specific tax equal to area b.
C
You might also like to view...
When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
One reason the supply of carpenters is greater than the supply of physicians is because:
a. carpenters demand less income. b. physicians do not belong to a union. c. of differences in human capital. d. carpenters belong to unions.
The primary international reserve asset in most countries is:
a. silver. b. gold. c. the euro. d. the U.S. dollar. e. the Japanese yen.
The prices of telecommunications services have decreased due to productivity increases.
Answer the following statement true (T) or false (F)