The effect of a Pigovian tax on a market is:
A. decreased price and quantity to the efficient level.
B. decreased price and increased quantity to the efficient level.
C. increased price and reduced quantity to the efficient level.
D. increased price and quantity to the efficient level.
Answer: C
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Which of the following scenarios would be considered an investment according to economists?
A. The owner of a fishing company buys Google shares. B. The owner of a fishing company buys new fishing gear. C. The owner of a fishing company buys fuel to run the boats. D. A fishing company buys a few boats from another fishing company that was shutting down.
Refer to Scenario 2. The average fixed cost of 2 units of output is:
A) $8.00. B) $8.50. C) $12.00. D) $20.50.
The demand for most agricultural products tends to be
a. both price and income elastic b. both price and income inelastic c. price inelastic and income elastic d. price elastic and income inelastic e. unit elastic in terms of price elasticity and income elastic
When an economy experiences a zero rate of inflation, which of the following statements is definitely true?
A. Real incomes improve. B. There is no redistribution of income and wealth because of inflation. C. Relative prices do not change. D. Real incomes are affected by money illusion. E. The level of uncertainty increases in the economy