A uniform tax according to the physical quantities of pollution may not be the appropriate way to correct for an externality because

A. a firm will reduce production.
B. it places a unfair burden on small producers.
C. a uniform tax can only account for social costs and not external costs.
D. it may not adequately account for economic damages.


Answer: D

Economics

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Economics

Refer to Table 4-3. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $30, Marko's will produce

A) 0 shirts. B) 1 shirt. C) 3 shirts. D) 4 shirts.

Economics

Suppose a bank has $100,000 in deposits, a required reserve ratio of 20 percent, and total reserves of $20,000. Then this bank can make new loans in the amount of

A. $20,000. B. $40,000. C. $0. D. $100,000.

Economics

Economists speaking like policy advisers make

a. positive statements. b. descriptive statements. c. claims about how the world is. d. claims about how the world should be.

Economics