Which of the following is a difference between a corrective tax and a corrective subsidy?
a. A corrective tax leads a market to allocative efficiency, while a corrective subsidy does not lead to allocative efficiency.
b. A corrective tax eliminates deadweight loss, while a corrective subsidy does not eliminate deadweight loss.
c. A corrective tax is useful in the case of negative externalities, while a corrective subsidy is useful in the case of positive externalities.
d. A corrective tax operates by decreasing the private cost of production, while a corrective subsidy operates by decreasing the private benefit of consumption.
c
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Use the table below to answer the following question.UnitsMarket PriceMinimum Acceptable Price1$10$22104310641085101061014What is the value of producer surplus in the table above?
A. $6 B. $20 C. $54 D. $12
The consumer price index for a country in Year 1 was 129 and in Year 2, it was 133. The inflation rate of the country between the two years is approximately ________
A) 6 percent B) 2.2 percent C) 4 percent D) 3.1 percent
Refer to Figure 2-18. Which two arrows in the diagram depict the following transaction: Myrna earns $450 for working at HempHill's Drug Store
A) J and M B) K and G C) K and M D) J and G
The International Monetary Fund was founded
a. in Paris in 1938 b. in New York in 1961 c. in Washington in 1971 d. in New York in 1991 e. in Bretton Woods in 1944