The figure above illustrates the gasoline market. There is no external benefit from gasoline. If a pollution tax equal to the marginal external cost is imposed on gasoline, then the quantity of gasoline produced and consumed equals
A) 0 gallons.
B) 5 million gallons.
C) 10 million gallons.
D) 20 million gallons.
E) None of the above answers is correct.
C
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Refer to the above table. The equilibrium real GDP is
A) $14 billion. B) $12 billion. C) $15 billion. D) $13 billion.
Non-paying activities in economics are referred to as:
A) relief. B) leisure. C) free time. D) unemployment.
In recent years, U.S. exports have exceeded U.S. imports
Indicate whether the statement is true or false
Given full-employment output = $2,800, equilibrium real GDP = $2,500, and MPS = 0.25, which of the following changes would most likely bring the economy to a full-employment level of real GDP?
a. $300 decrease in taxes. b. $75 increase in government spending. c. $75 decrease in taxes. d. $300 increase in government spending. e. $75 decrease in government spending.