Pollution taxes reduce pollution by:
A. decreasing the amount of the good sold that causes the pollution.
B. causing firms to produce less of the good that generates the pollution.
C. encouraging firms to modify their production process to reduce emissions.
D. All of these
Answer: D
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Suppose you want to buy a popular brand of digital camera. Every store in town is out of stock. You are willing and able to pay the current market price of $300 for a camera, but you cannot find any available
Is the market for the digital camera in equilibrium? If not, is the market equilibrium price of the camera above or below $300? Use supply and demand analysis to explain your answer.
Contractionary fiscal policy to prevent real GDP from rising above potential real GDP would cause the inflation rate to be ________ and real GDP to be ________
A) lower; lower B) lower; higher C) higher; higher D) higher; lower
The original European Economic Community
A) was a free trade area. B) had 12 countries. C) had a common language. D) was a customs union.
When the slope of a demand curve is constant, price elasticity of demand is constant as well.
Answer the following statement true (T) or false (F)