Suppose a tax is imposed on producers of aluminum as a means of internalizing the externality associated with aluminum production. If the tax accurately reflects the external costs of pollutants released into the atmosphere, then the new supply curve for aluminum coincides with which other curve?
The new supply curve coincides with the social-cost curve.
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In the graph of supply and demand in the market for labor:
A. individuals make up the demand curve. B. the equilibrium price of labor is generally denoted as L*. C. firms provide the demand. D. equilibrium is rarely achieved.
Early in U.S. history, health insurance was provided to cover:
a. the catastrophic cost of medical care including hospitalization and physicians' services. b. routine physicians' services. c. medical costs due to specific diseases such as tuberculosis and alcoholism. d. hospital expenses. e. income loss due to disability or disease
Holding all variables constant but one and assessing the impact of the one variable that has changed is an example of using
A) the ceteris paribus assumption. B) an economic model based on unrealistic assumptions. C) a flawed economic model. D) an untestable proposition.
The crowding-out effect refers to
A. an increase in the consumption of imported goods at the expense of domestic goods. B. a decrease in consumer spending caused by a decrease in consumer confidence. C. an increase in the consumption of domestic goods at the expense of imported goods. D. a decrease in consumption and investment caused by an increase in government borrowing.