Answer the following statement(s) true (T) or false (F)
1. The sum of all polluters’ MACs equals the marginal social cost (MSC) of abatement.
2. Much of the air pollution in Catano, Puerto Rico was linked to a nearby oil refinery.
3. By definition, the marginal abatement cost (MAC) curve shows the change in costs associated with higher levels of abatement, using the most widely available technology.
4. The marginal cost of enforcement (MCE) must be added vertically to the MACmkt to derive the marginal social cost (MSC) of abatement function.
5. If a standard is set to balance the well-being of society with the associated costs, it is called a benefit-based standard.
1. False
2. False
3. False
4. True
5. False
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Which of the following taxes is collected only by the federal government?
A) Corporate income tax B) Social insurance tax C) Property tax D) Excise tax
Draw a two period budget line where the borrow/lending rate of interest, r, allows consumers to choose consumption in each of the two periods. C1 and C2 given their anticipated income on two periods, Y1 and Y2 . The slope is
a. r b. ?r c. 1 + r d. ?(1 + r)
Tax cuts
a. can easily target investment spending, but investment spending falls by only a small percentage during recessions. b. can easily target investment spending, which falls by a large percentage during recessions. c. cannot easily target investment spending, but investment spending falls by only a small percentage during recessions. d. cannot easily target investment spending, which falls by a large percentage during recessions.
Soft pegs that are periodically adjusted are called
A) crawling pegs. B) hard pegs. C) snakes. D) managed floats.