Assume that production from an electric utility caused acid rain. If the government imposed a tax on the utility equal to the marginal external cost of the acid rain, the government's action would
A) internalize the externality.
B) externalize the externality.
C) result in a marginal social benefit greater than the marginal cost of the electricity.
D) be an example of supply-side economic policy.
A
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Last year, Joan bought 50 pounds of hamburger when her household income was $40,000. This year, her household income was only $30,000 and Joan bought 60 pounds of hamburger
Holding everything else constant, Joan's income elasticity of demand for hamburger is A) negative, so Joan considers hamburger to be an inferior good. B) negative, so Joan considers hamburger to be a normal good. C) positive, so Joan considers hamburger to be an inferior good. D) positive, so Joan considers hamburger to be a normal good and a necessity.
Federal government purchases, as a percentage of GDP
A) have fallen since the early 1950s. B) have remained roughly the same since the early 1950s. C) rose from the early 1950s until the mid 1980s, and then fell. D) have risen since the early 1950s.
What is the Nash equilibrium of this game?
a. Cheat, Cheat b. Not cheat, Not cheat c. Sam cheats, Sarah doesn't d. Sarah cheats, Sam doesn't
You probably know why firms advertise. But the incentives to advertise vary from market structure to market structure. In which market structure is there a weak, but still existent, reason to advertise?
a. monopoly b. oligopoly c. monopolistic competition d. perfect competition e. there is no weak incentive—they are always strong