With a corrective tax, the supply curve for pollution is
a. vertical.
b. horizontal.
c. upward-sloping.
d. downward-sloping.
b
You might also like to view...
If the purchasing power of the dollar is less than the purchasing power of the British pound, purchasing power parity predicts that the exchange rate will
A) decrease if the exchange rate is less than 1 pound per dollar. B) be equal to the relative purchasing power across the currencies in the long run. C) increase if the exchange rate is greater than 1 pound per dollar. D) All of the above are correct.
If two economists disagree on an issue and their disagreement is based on personal value judgments, then this controversy is a normative one
a. True b. False
The existence of long term leases agreements in rental markets:
A. harms landlords and benefits tenants by preventing landlords from raising the rent each month. B. solves a commitment problem that is inherent in markets with imperfect information. C. creates an informational advantage for landlords. D. benefits landlords by keeping occupancy rates high and harms tenants by reducing their mobility.
A positive temporary supply side shock will:
A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.