What is the purpose of a pollution tax?
What will be an ideal response?
The purpose of a pollution tax is to make the firm fully realize the costs it imposes on society. That is, to make the firm internalize the external costs imposed on society by its production.
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All of the following are critical functions of the government in facilitating the operation of a market economy except
A) enforcing contracts. B) ensuring an equal distribution of income to all citizens. C) protecting private property. D) enforcing property rights.
In the theory of economic development, the competing strategy to the big-push is
a. unbalanced development with forward and backward linkages b. supply and demand c. balanced economic development d. real and money investments e. government spending (financed by taxes)
Sadie works at a factory for $15 an hour and typically works 40 hours a week. Sadie gets a pay raise and now earns $20 an hour. She decides to work 45 hours a week at $20 an hour. Her response to the pay increase demonstrates the:
A. labor effect outweighing the price effect. B. price effect outweighing the income effect. C. income effect outweighing the price effect. D. income effect outweighing the substitution effect.
Which of the following would shift the demand curve for new textbooks to the right?
A) A decrease in the price of paper. B) A fall in the price of used textbooks. C) An increase in college enrollments. D) A fall in the price of new textbooks