The tax-or-subsidy approach for solving externality problems was developed by
A. Ronald Coase.
B. Arthur Pigou.
C. Bertil Ohlin.
D. Eli Heckscher.
Answer: B
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Taxes can adversely affect free exchange
Indicate whether the statement is true or false
How does a primary financial market differ from a secondary financial market?
What will be an ideal response?
Cindy discovers that when she goes to the beach, she does not have to bring her radio. She can put her blanket near someone who has a radio and listen all day (without having to carry her radio, get sand in her speakers, or buy new batteries). She's delighted. This is an example of
a. private property abuse b. an externality cost to the person who has the radio c. a negative externality enjoyed by Cindy d. a positive externality enjoyed by Cindy e. a public good
The property of money that allows us not to worry about "using it before it spoils" is called the
A. medium of exchange. B. store of value. C. security of value. D. creation of value.