Which of the following is not an effective method of reducing negative externalities?
a. relying on voluntary compliance
b. taxing the output of industries that pollute
c. creating legal environmental standards
d. increasing public spending on cleanup and reduction of pollution
a
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Suppose an industry is composed of 10 firms. Each firm's share of total sales in the industry is 10 percent. If two of the firms merge, then the four-firm concentration ratio in the industry will
A) remain unchanged. B) decrease as there are fewer firms in the industry. C) increase. D) depend on the market condition faced by the industry.
If Diet Pepsi and Diet Coke are substitutes than an increase in the price of Diet Pepsi will cause a decrease in demand for Diet Coke
a. True b. False Indicate whether the statement is true or false
Pure monopoly markets are very common in the real world
a. True b. False Indicate whether the statement is true or false
The real interest rate tells you how fast the purchasing power of your bank account rises over time
a. True b. False Indicate whether the statement is true or false