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

Economics

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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.

Economics

Non-paying activities in economics are referred to as:

A) relief. B) leisure. C) free time. D) unemployment.

Economics

In recent years, U.S. exports have exceeded U.S. imports

Indicate whether the statement is true or false

Economics

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.

Economics